Start of construction for voestalpine greentec steel in Linz

Only a few weeks after the official start of construction at the voestalpine site in Donawitz, the traditional groundbreaking ceremony for greentec steel took place at the Group’s headquarters in Linz.

In the first step of the phased approach, one electric arc furnace (EAF) will be built at each of the sites in Linz and Donawitz. Integrating the two green electricity-powered EAFs into steel production makes it possible to electrify energy-intensive processes, thus reducing CO2 emissions by around 30% from 2027. This corresponds to an annual saving of almost 4 million tons of CO2 or 5% of domestic emissions. That makes greentec steel Austria’s largest climate protection program.

Starting in 2030, the plan is to replace two more blast furnaces in Linz and Donawitz and invest in an additional EAF in Linz. To achieve the net zero target by 2050, the Group is researching into several new processes and investing in pilot projects which explore new pathways in steel production.

“The two groundbreaking ceremonies in Linz and Donawitz are more than just a symbolic act and the start of a construction project. They are the visible cornerstone for voestalpine’s green future and an important milestone for climate protection in Austria,” said Mr. Herbert Eibensteiner, CEO of voestalpine AG.

The investment volume for both projects amounts to EUR 1.5 billion, of which Linz accounts for around EUR 1 billion.

Construction of the EAF in Linz starts in 2024, with commissioning scheduled to follow three years later. Once fully operational, the EAF will produce around 1.6 million tons of CO2-reduced steel annually. To maintain high product quality, the EAF uses a mix of scrap, liquid pig iron, and HBI (hot briquetted iron).

“The basic requirement for operating the EAFs is sufficient availability of green electricity at competitive prices. Even more important is providing an efficient and integrated network infrastructure,” commented Mr. Hubert Zajicek, Member of the Management Board of voestalpine AG and Head of the Steel Division.

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