ArcelorMittal confirms the construction of an electric arc furnace in Dunkirk, France: a €1.3 billion investment supporting an important step in its decarbonisation

Core Insights - ArcelorMittal has confirmed a strategic €1.3 billion investment for the construction of an electric arc furnace (EAF) at its Dunkirk steelmaking site, marking a significant step in the decarbonisation of its steel production in France [1][3][10] Investment Details - The EAF is expected to have a production capacity of 2 million tonnes and will generate steel with three times less CO2 emissions compared to traditional blast furnaces, producing 0.6 tonnes of CO2 per tonne of steel [3] - The funding for this project will be partially supported by Energy Efficiency Certificates (CEE), which will cover 50% of the total investment [3] Regulatory Environment - Recent regulatory proposals from the European Commission aim to limit unfair imports through a Tariff Rate Quota (TRQ) mechanism and reform the Carbon Border Adjustment Mechanism (CBAM) [4] - ArcelorMittal expresses appreciation for these regulatory developments, which are expected to restore fair competition in the European steel market and secure a sustainable future for steel production in the EU [5] Government Support - The French government, including President Emmanuel Macron, has been instrumental in supporting the steel industry, which has facilitated the investment decision for the Dunkirk EAF [7][8] - A long-term contract with EDF for low-carbon electricity supply is also a critical component of ArcelorMittal's energy strategy in France [5] Future Prospects - The company is considering the possibility of building additional EAFs in other European locations, contingent on favorable economic conditions and regulatory frameworks [9] - The Dunkirk EAF project is seen as a milestone for ArcelorMittal's commitment to decarbonisation and the long-term viability of steel production in Europe [10] Additional Investments - In addition to the EAF, ArcelorMittal is launching a new electrical steel production unit at its Mardyck plant, with a €500 million investment, representing the largest investment in Europe in the last decade, excluding decarbonisation efforts [11]