MT - Thyssenkrupp ArcelorMittal win EU approval for combined Euro2.85B green steel aid

2023-07-20 07:42:14 ET

The European Commission said Thursday it approved state aid measures worth a combined €2.85B (~$3.19B) to go toward decarbonizing the operations of Thyssenkrupp ( OTCPK:TYEKF ) ( OTCPK:TKAMY ) and ArcelorMittal ( NYSE: MT ).

The German package for Thyssenkrupp ( OTCPK:TYEKF ) ( OTCPK:TKAMY ) comprises €550M in direct grants and a conditional payment of as much as €1.45B, will go toward the construction and installation of a direct reduction plant and two melting units in Duisburg which will replace an existing blast furnace.

The payment mechanism, covering the first 10 years of the new plant's operation, will cover the additional costs of procuring and using renewable hydrogen.

The EU separately approved an €850M French measure to support ArcelorMittal's ( MT ) steel decarbonization plans through the construction of a direct reduction plant and two electric arc furnaces at the company's Dunkirk location.

The new facilities will substitute two of the company's three existing blast furnaces and two of the three basic oxygen furnaces at the location.

The Commission said the various facilities for both companies are planned to launch operations in 2026.

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