Thyssenkrupp, ArcelorMittal to Share in $3 Billion in State Aid for Decarbonization
20 Juli 2023 - 1:32PM
Dow Jones News
By Pierre Bertrand
The European Commission said on Thursday that it has approved
state aid measures worth a combined 2.85 billion euros ($3.19
billion) to go toward decarbonizing the operations of Thyssenkrupp
and ArcelorMittal.
The European Commission, the executive arm of the European
Union, approved an up to EUR550 million German grant for
Thyssenkrupp's Steel Europe business. It also approved a
conditional payment mechanism of up to EUR1.45 billion for the
German steel company.
The grant will go toward the construction and installation of a
direct reduction plant and two melting units in Duisburg which will
replace an existing blast furnace. Natural gas use will be
eventually phased out and, by 2037, the plant will be powered by
only renewable hydrogen, the commission said.
The German payment mechanism, covering the first 10 years of the
new plant's operation, will cover the additional costs of procuring
and using renewable hydrogen. The facilities are intended to start
operating in 2026, the commission said.
Meanwhile, the commission said separately that it approved a
EUR850 million French measure to support ArcelorMittal.
The funds will go toward the Luxembourg-based steelmaker
building a direct reduction plant and two electric arc furnaces at
its Dunkirk location.
The new facilities will substitute two of the company's three
existing blast furnaces and two of the three basic oxygen furnaces
at the location. As in Germany, initial use of natural gas will be
phased out and replaced with renewable or low-carbon hydrogen,
biogas and electricity, the commission said.
The funds for ArcelorMittal's project will be allocated in four
installments during construction which is planned between 2023 and
2026. The combined facilities are envisioned operational in 2026,
the commission said.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
July 20, 2023 07:17 ET (11:17 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Thyssenkrupp (TG:TKA)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Thyssenkrupp (TG:TKA)
Historical Stock Chart
Von Apr 2023 bis Apr 2024
