According to the commission, the grant will support construction of a hydrogen-fueled direct reduced iron (DRI) plant, which along with a planned electric arc furnace, will eventually replace a blast furnace at the facility. The plant will initially operate on natural gas but will eventually switch to renewable produced hydrogen and syngas produced from waste and metallurgical gases, the commission said. 

The plant is expected to be in service by the end of 2025 and is to produce 2.3 million metric tons of DRI annually. 

Margrethe Vestager, European Commission executive vice president in charge of competition policy, said the grant will help ArcelorMittal decarbonize its operations. 

“It will contribute to the greening of a very energy-intensive sector, in line with our commitment to transition to a net-zero economy. At the same time, the measure ensures that competition in the single market is not unduly distorted.”