Luxembourg-based steelmaker ArcelorMittal has announced its intention to invest in new electric arc furnace (EAF) production capacity at its Belval site in Luxembourg. The company states that this investment is part of a series of projects outlined in a memorandum of understanding (MoU) signed last September between ArcelorMittal Luxembourg and the Ministry of the Economy in Luxembourg.
According to ArcelorMittal, the Luxembourg government has expressed its willingness to provide financial support for the EAF investment through various applicable aid mechanisms, amounting to approximately 15 million euros ($16.4 million).
The new EAF at Belval is expected to enhance energy efficiency and increase steel production capacity in Luxembourg by nearly 15%, reaching an annual output of 2.5 million metric tons. Unlike recent EAF installations that involved converting from blast furnace technology, the new equipment will replace an existing EAF that has been operational since 1997. ArcelorMittal describes the Belval steel plant as specializing in the production of various rail ranges and niche products.
In terms of decarbonization efforts, ArcelorMittal highlights that EAFs have the capability to produce steel using recycled scrap and operate solely on renewable energy.
The installation of the replacement EAF in Belval is set to commence this year, with the goal of commissioning it by 2025.
Geert van Poelvoorde, CEO of ArcelorMittal Europe, emphasizes that this project represents a tangible outcome of the MoU signed to develop initiatives supporting ArcelorMittal’s Luxembourg sites in their journey towards carbon-neutral steel production. He also acknowledges the swift progress of the project and the Luxembourg government’s endorsement of their decarbonization strategy.