The European Investment Bank (EIB) is providing a loan of €300 million to voestalpine AG, Europe’s third largest steelmaker.
The financing will be used for the company’s research and development (R&D) programme over a period of four years, with the goal to optimise manufacturing processes, increase energy and raw material efficiency, and extend product life.
voestalpine aims to drastically reduce its environmental and carbon footprint by 2030 and to achieve carbon neutrality of its production by 2050.
''I very much welcome our new co-operation with voestalpine, which will help to decarbonize their operations while delivering high-end products.”
Thomas Östros, EIB vice-president in charge of activities in Austria
“Steel manufacturing is responsible for a significant share of global CO2 emissions. At the same time, it is fundamental for the competitiveness and technological leadership of European industries and for millions of jobs across the continent. Therefore, we need to find ways to produce iron and steel more sustainably – R&D is key to doing so. I very much welcome our new co-operation with voestalpine, which will help to decarbonize their operations while delivering high-end products,” said Thomas Östros, EIB vice-president in charge of activities in Austria.
voestalpine will use the capital provided by the EIB to fund key research and innovation.
“By continuing to invest in new products and processes, we can further secure our position as a global player in demanding product segments.''
Gerald Mayer, CFO of voestalpine AG
“By continuing to invest in new products and processes, we can further secure our position as a global player in demanding product segments. Our R&D activities are primarily focused on digital and resource-saving products and processes. One of the main research topics we are currently looking into is greentec steel, a project voestalpine intends to use to become a quality leader in net-zero steel production in the future”, said CFO of voestalpine AG, Gerald Mayer.
Greentec steel is the group’s plan for green steel production. In a first step starting in 2027, voestalpine aims to cut its CO2 emissions by up to 30% by partially replacing its current coal-based blast furnace technology with electric arc furnace technology powered by green electricity. This represents almost 5% of Austria’s annual CO2 emissions, making greentec steel the country’s largest climate protection programme, according to the steelmaker. voestalpine’s aim is CO2-neutral steel production by 2050.