The company said the new 2-million-metric-ton EAF will produce streel with three times less CO2 compared to a blast furnace. The funding will be supported by energy efficiency certificates, representing 50% of the €1.3 billion investment. 

“The decision to proceed with building an EAF in ArcelorMittal Dunkirk, to produce low-carbon emissions steel at scale for our customers, has been made possible because we now have the conditions in place to make this project a success,” said Geert van Poelvoorde, chief executive officer of ArcelorMittal Europe. 

ArcelorMittal said that it expects the tariff rate quota and carbon border adjustment mechanism measures to restore fair and competitive conditions in the European steel market. It has also signed a contract with EDF for the supply of low carbon electricity. 

“We will review the possibility of building further EAFs elsewhere in Europe… Having a strong steel industry in each European country in which we operate is a crucial foundation for thriving industry, and I hope that the conditions created in France can be replicated elsewhere so that we have a strong business case to invest further in the future,” Poelvoorde continued. 

Start-up is scheduled for 2029, the company said. It will also start up a new electrical steel production unit this quarter in its Mardyck plant.