By Pierre Bertrand

 

Luxembourg's economy ministry said late Tuesday that it signed a memorandum of understanding with ArcelorMittal to support the steelmaker's investments in decarbonization.

The first tranche of decarbonization projects has an estimated budget of 100 million euros ($96 million) and includes the installation of a new electric arc furnace at the company's Belval steel plant, the ministry said.

The Luxembourg government didn't detail its financial contribution to the projects, but said it would support the investments through available funding mechanisms.

The new furnace will improve energy efficiency and boost ArcelorMittal's annual steel production capacity in Luxembourg by almost 15% to 2.5 million metric tons, covering the country's needs for finished rolled products, the ministry said.

A further EUR30 million will be dedicated over the next five years as the Luxembourg-based company works to make its Bissen site carbon-neutral, the statement said.

 

Write to Pierre Bertrand at pierre.bertrand@wsj.com

 

(END) Dow Jones Newswires

September 28, 2022 02:50 ET (06:50 GMT)

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