MT ArcelorMittal

By Mauro Orru

ArcelorMittal will build a special plant and two new electric furnaces in Belgium for an investment of 1.1 billion euros ($1.29 billion) as its Belgian affiliate doubles down on its efforts to cut carbon emissions by 3.9 million metric tons a year by 2030.

The Luxembourg-based steel-and-mining company said Tuesday that it has inked a letter of intent with the governments of Belgium and Flanders, paving the way for the project to build a direct reduced iron plant and two new electric furnaces at its Ghent site.

The new plant will use natural gas, and potentially hydrogen, instead of coal, reducing carbon emissions compared with blast furnace ironmaking.

The two electric furnaces will melt the direct reduced iron and scrap steel, which will then be transformed in the steel shop into steel slabs and then further processed into finished products.

"The support of both the national and the Flanders governments in this project is crucial given the significant cost associated with the transition to carbon-neutral steelmaking," the company said.

The European Commission will have to grant approval for funding support.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

September 28, 2021 04:57 ET (08:57 GMT)

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