According to the EIB, the financing will provide for research and development work into process optimization, energy and raw materials efficiency, and improved products.

“Steel manufacturing is responsible for a significant share of global CO₂ emissions. At the same time, it is fundamental for the competitiveness and technological leadership of European industries and for millions of jobs across the continent. Therefore, we need to find ways to produce iron and steel more sustainably — R&D is key to doing so. I very much welcome our new cooperation with voestalpine, which will help to decarbonize their operations while delivering high-end products,” said EIB vice president Thomas Östros.

The financing ultimately will support voestalpine’s greentec program, which aims to reduce the company’s CO₂ emissions by up to 30% through process conversion. The company intends to partially replace its current coal-based blast furnace technology with electric arc furnace technology powered by green electricity. voestalpine ultimately is looking to be CO₂ neutral by 2050.

“By continuing to invest in new products and processes, we can further secure our position as a global player in demanding product segments. Our research and development activities are primarily focused on digital and resource-saving products and processes. One of the main research topics we are currently looking into is greentec steel, a project voestalpine intends to use to become a quality leader in net-zero steel production in the future,” said voestalpine chief financial officer Gerald Mayer.