This investment is part of a series of projects that were the subject of a memorandum of understanding (MoU) signed last September between ArcelorMittal Luxembourg and the Ministry of the Economy. This MoU confirms the willingness of the Luxembourg government to financially support this type of strategic investment, through the various applicable aid mechanisms. For this project in particular, the subsidies made available by the Luxembourg State amount to approximately 15 million euros.
The new Belval electric arc furnace is one of the flagship projects of this Memorandum of Understanding. It will offer improved energy efficiency and an increase in steel production capacity in Luxembourg of almost 15%, reaching 2.5 million tonnes of steel per year. With this new facility replacing the current EAF operated since 1997, and with additional investments to be made in other areas of the Belval steel plant, ArcelorMittal Luxembourg plants will be self-sufficient in crude steel production capacity to cover the needs of finished rolled products in the Grand Duchy. In particular, the Mill A at the ArcelorMittal Rodange site will henceforth be supplied exclusively by this new installation, for the production of its numerous ranges of rails and niche products.
Electric furnaces produce steel from recycled scrap and can be operated using solely renewable energy. In addition to the advantages of recycling scrap, this process reduces CO2 emissions by a factor of six(1) compared with conventional steel production using blast furnaces.
The installation of the new electric furnace in Belval will start this year, with commissioning in 2025.