ArcelorMittal received 280 million Euro funding from EIB to achieve its decarbonisation objectives

A 280 million Euro loan granted to ArcelorMittal by the European Investment Bank (EIB) backed by the Investment Plan for Europe will help to fund the group’s European research and development programme between 2021 and 2023.

This major funding initiative aims to support ArcelorMittal’s research activities and the associated capital expenditure in the field of environmental, climate and energy projects. It will help the group to reach its ambitious climate action goals and thus to reduce the environmental footprint of its manufacturing facilities, steel products and technological solutions, a release shows. ArcelorMittal Europe has committed to reducing CO2e emissions intensity by 35% by 2030, with ArcelorMittal Group having set a 2050 net-zero emissions target.

This partnership between the EIB and ArcelorMittal is backed by the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe. In general, at least 40% of EFSI infrastructure and innovation projects aim to contribute to climate action in line with the Paris Agreement. This project will also contribute to EU industry’s leadership as a provider of high-tech steel grades, products and solutions.

Vice-President of ArcelorMittal and Head of Research and Development Greg Ludkovsky said: “The role of our organisation, Global R&D, is to create the technological basis for ensuring ArcelorMittal’s long-term viability as the world’s leading steel and mining company. This funding will help Global R&D to further enable ArcelorMittal’s ambitions to reduce its environmental footprint in terms of its operations and its products. We will be able to expand our work to develop environmentally sustainable, high-added value, cost-effective and disruptive products and manufacturing processes.”

EIB Vice-President Ambroise Fayolle underlined the fact that “the signing of this agreement between the EU bank and ArcelorMittal will support a major European player in the steel industry with an in-depth focus on higher value-added steel products. These investments will play a key role in ArcelorMittal’s carbon footprint reduction strategy and therefore contribute to the European Green Deal, aligned with the terms of the 2015 Paris Agreement on climate change.”

EIB Vice-President Kris Peeters said: “I very much welcome this financing agreement, which will support the innovation efforts of ArcelorMittal in the European Union. I like the idea that the research will be carried out in several Member States, in a true European spirit. The steel sector is vital for the European economy. More than other sectors, it is faced with the need to constantly reinvent itself and make its production processes more efficient and less of a burden on the environment. This requires constant investment in innovation. I trust that through our support we can support ArcelorMittal in its operations, helping to increase the competitiveness of the company and thereby contributing to the EU’s leadership as provider of high-tech steel worldwide.”

European Commissioner for the Economy Paolo Gentiloni added: “Thanks to a guarantee from the Investment Plan for Europe, ArcelorMittal will invest €280 million into research and development activities to meet its climate goals and reduce the environmental footprint of its manufacturing facilities. This agreement shows that innovation is key to companies’ efforts to contribute to Europe’s climate commitments while staying competitive. I am looking forward to seeing many other companies follow suit.” 

In 2017, ArcelorMittal Group and the EIB signed a financing agreement for €350 million, supported by the Investment Plan for Europe, to help to fund the group’s European research and development programme between 2017 and 2020.

In 2020, the EIB granted a €75 million loan to ArcelorMittal supported by InnovFin Energy Demonstration projects and financed under Horizon 2020 and the NER 300 funding programme of the European Commission.