ArcelorMittal has signed a memorandum of understanding (MoU) with the Spanish Government that will see a €1 billion investment in decarbonisation technologies at ArcelorMittal Asturias’ plant in Gijón. The investments will reduce CO2 emissions at ArcelorMittal’s Spanish operations by up to 4.8 million tonnes, which represents approximately 50% of emissions, within the next five years.

ArcelorMittal has also announced that its Sestao plant in Spain will become the world’s first full-scale zero carbon-emissions steel plant. The development is the result of an memorandum of understanding signed today with the Government of Spain that will see an investment of €1 billion in the construction of a green hydrogen direct reduced iron (DRI) plant at its plant in Gijón, as well as a new hybrid electric arc furnace (EAF).

By 2025, the Sestao plant – which manufactures a range of flat steel products for the automotive and construction sectors, and general industry - will produce 1.6 million tonnes of zero carbon-emissions steel by:

  1. Changing the metallic input by increasing the proportion of circular, recycled scrap, and using green hydrogen-produced DRI from Gijón in its two existing EAFs.
  2. Powering all steelmaking assets (EAFs, rolling mill, finishing lines) with renewable electricity.
  3. Introducing several key emerging technologies that will replace the small, remaining use of fossil fuel in the steelmaking process with carbon-neutral energy inputs, such as sustainable biomass or green hydrogen.

How we will create the world’s first full-scale zero carbon-emissions steel plant:

“It is widely understood that for the world to achieve net-zero by 2050, faster progress over the next decade is essential.  The MoU we have signed today will play an important role in doing exactly that.  The construction of the new green hydrogen DRI plant in Gijón will not only enable us to reduce emissions at our Spanish operations by half, but will also result in the world’s first scope one and two net zero steel plan in Sestao.”

“Clearly, this is a project that will require the support of many different partners to succeed; our plan hinges on the supply of affordable, mass-scale hydrogen, access to sustainable finance and a supportive legal framework that allows us to be competitive globally. The Spanish government has clearly defined plans to transition the country to a decarbonised economy and I have been impressed by the progress made in creating the energy infrastructure that this green economy will require.”

“As a large emitter, the steel industry can make a vital contribution to achieving net zero.  This project demonstrates what is achievable and we hope it galvanizes engagement to accelerate progress over the next decade and beyond.”

Aditya Mittal, CEO ArcelorMittal