ArcelorMittal To Invest €1.3 Billion In Construction Of Electric Arc Furnace In Dunkirk, France

ArcelorMittal confirmed Tuesday the construction of an electric arc furnace (EAF) at its steelmaking site in Dunkirk – a strategic €1.3 billion investment which marks a major step in the decarbonisation of ArcelorMittal’s steel production in France. 

The start‑up of this 2-million-tonne EAF is scheduled for 2029, ArcelorMittal said, adding it will produce steel with three times less CO₂ compared with a blast furnace (0.6 tonne CO₂ per tonne of steel in the EAF based on a mix of scrap, HBI/DRI and hot metal). Its funding will be supported by Energy Efficiency Certificates (CEE), a regulatory mechanism that promotes energy savings and CO₂ reduction. The amount of support will represent 50% of the €1.3 billion investment.

In recent months, the European Commission has published important regulatory proposals, in particular with regard to (1) limiting unfair imports through the Tariff Rate Quota (TRQ) mechanism which will limit the quantity of imports and impose additional duties to importers that are above the limits and (2) reforming the Carbon Border Adjustment Mechanism (CBAM).

ArcelorMittal said it appreciates the progress made by the European Commission to better protect the European steel industry. It is now important to implement the TRQ and adapt the CBAM to close the remaining loopholes as swiftly as possible. Assuming the measures are fully implemented as envisaged, ArcelorMittal expects them to restore fair and competitive conditions in the European steel market, thus securing a sustainable future for steel production within the European Union.

Another critical factor is the recent signing of a contract with EDF to secure a long-term supply of low-carbon, competitive electricity. This represents a major step in ArcelorMittal France’s energy strategy, the company said.