By Pierre Bertrand

The European Commission on Thursday approved 280 million euros ($307.7 million) in Belgian state aid designed to help ArcelorMittal decarbonize its steel production.

A direct grant and a soft loan will to go toward the Luxembourg-based steelmaker's site in Ghent where it operates two blast furnaces, the Commission said.

The funds will be used to support the construction of a direct reduction iron plant which, along with a new electric arc furnace, will replace one of the company's blast furnaces, the Commission said.

Natural gas will gradually be phased out from the steel production process and ultimately the plant, envisioned operational in 2026 and expected to produce 2.3 million tons of low-carbon direct reduced iron a year, will function with hydrogen.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

June 22, 2023 09:16 ET (13:16 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
Arcelor Mittal (NYSE:MT)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024 Click aqui para mais gráficos Arcelor Mittal.
Arcelor Mittal (NYSE:MT)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024 Click aqui para mais gráficos Arcelor Mittal.