Voestalpine's supervisory board has approved an investment of $1.62 billion in CO2-reduced steel production as part of a move by the Austrian steelmaker to become carbon-neutral by 2050.
According to a report by Reuters, two electric arc furnaces are to be built in Voestalpine's plants at Linz and Donawitz by 2027, and are foreseen to replace one blast furnace in each of these locations by 2030.
Voestalpine has already secured 100kt of green steel in orders, chief executive officer Herbert Eibensteiner said following the announcement.
Though the company expects to receive funding for the electric arc furnaces, it still anticipates having to assume the majority of costs, he added.
The investment forms part of the Austrian firm’s ‘greentec steel’ plan, through which the firm aims to achieve climate-neutral steel production by 2050.
“Greentec steel is Austria’s largest climate protection programme. It will allow us to save 5% of Austria’s entire annual CO₂ emissions from 2027.''
Herbert Eibensteiner, chief executive officer, Voestalpine
“Greentec steel is Austria’s largest climate protection programme. It will allow us to save 5% of Austria’s entire annual CO₂ emissions from 2027'', said chief executive officer, Herbert Eibensteiner.
“We need to start this year if we are to meet our target of commissioning the two new electric arc furnaces in Linz and Donawitz in 2027,” Eibensteiner added.
The new furnaces will enable Voestalpine to produce around 2.5Mt of CO2-reduced steel per year, thus cutting its CO2 emissions by up to 30%.
Source: Reuters