ArcelorMittal has said it will construct a €1.3 billion (USD$1.5 billion) electric arc furnace (EAF) at its plant in Dunkirk, France. The investment forms part of a strategy outlined by the company to shift several of the Group’s European steelworks from coal to hydrogen. The Dunkirk site is a significant source of pollution, accounting for around 15% of CO₂ emissions from French industry.

The new, 2-million-tonne furnace will slash the quantity of CO₂ per tonne of steel produced by two-thirds compared with traditional blast furnaces (0.6 tonnes CO₂ per tonne of steel based on a mix of scrap, HBI/DRI, and hot metal). Operations are scheduled to commence in 2029.

In a press statement, the company said its investment decision, originally announced in May 2024 and then delayed, was due in part to the progress made by the European Commission to better protect the European steel industry. This progress includes the publication in recent months of important regulatory proposals regarding limiting unfair imports through the Tariff Rate Quota (TRQ) mechanism and reforming the Carbon Border Adjustment Mechanism (CBAM).

Assuming the measures are fully implemented as envisaged, it says, ArcelorMittal expects fair and competitive conditions in the European steel market to be restored, thus securing a sustainable future for steel production within the European Union. Another critical factor cited is the recent signing of a contract with EDF to secure a long-term supply of low-carbon, competitive electricity. This represents a major step in the company’s energy strategy in France.

Up to 50% of the investment will be funded through the energy savings certificate scheme (CEE), a government-regulated mechanism that requires energy suppliers to support projects designed to cut energy consumption.

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