voestalpine: Supervisory Board approves EUR 1.5 billion for green steel

voestalpine: Supervisory Board approves EUR 1.5 billion for green steel
The promotion for decarbonization is ongoing, an important decision was approved on Tuesday.
Image: voestalpine

This means that the two planned electric arc furnaces in Linz and Donawitz can be built. They are scheduled to go into operation in 2027. From 2027, 2.5 million tons of green steel can be produced in Austria per year, and the steel group’s CO2 emissions are to be reduced by 30 percent. “These 30 percent correspond to five percent of the total CO2 emissions of the whole of Austria. It is therefore the country’s largest climate protection project,” says CEO Herbert Eibensteiner. However, it is still unclear how the public sector will fund the project. This is being intensively negotiated with those responsible in the climate protection and economics ministries. Eibensteiner expects that a mid to high double-digit million amount will come from the public sector. “The talks are constructive. However, it is clear that we will shoulder the majority of the investment ourselves,” says the voestalpine boss.

voestalpine put the largest part of the investment sum – around 70 percent – in the Linz location. Not only an electric arc furnace will be built, but also a large scrap yard and a warehouse for the supply of raw materials. HBI (Hot Briquetted Iron) is required for the new furnaces. This comes from a plant in Corpus Christi (Texas) that voestalpine built but sold the majority of. 20 percent still belong to the group. The supply of raw materials is thus ensured, as is the purchase of green electricity.

After 2030, two more blast furnaces will be replaced by electric arc furnaces, leaving only one classic blast furnace. The next step will be the use of green hydrogen. This will be the subject of massive research until 2035. Ultimately, steel should be produced with hydrogen in a CO2-neutral manner. A test facility is located in Donawitz. “It is essential that we have green electricity available, which also means the expansion of the grids.” The lines should be able to go into operation as planned.

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