The Supervisory Board of Voestalpine AG made the first important decision to switch from coal-based blast furnace technology to green-powered electric arc furnace technology. In summer 2022, the Group will start clearing the necessary construction sites and carrying out infrastructural conversion work at its two sites in Linz and Donawitz.
The estimated investment costs in the first phase amount to a low three-digit million amount. Next year, the Supervisory Board will make a final decision on the investment of the two electric arc furnaces (EAF); the construction of the EAFs will start in 2024. At the beginning of 2027, an electric arc furnace is to go into operation in Linz and Donawitz.
From today’s perspective, the total investment costs amount to around one billion euros. As a result of this technology changeover, THE CO2emissions are significantly reduced by around 30%. This corresponds to savings of around 3 to 4 million tonnes of CO.2 per year, which is almost 5% of the annual CO2emissions of Austria.
“With Greentec steel, we have developed a clear plan for the decarbonization of steel production and are already largely ready to go. In order for the schedule to hold, however, appropriate framework conditions are required, such as sufficient renewable energy at economically feasible prices and efficient grids”, Herbert Eibensteiner, CEO of Voestalpine AG said.
The interest in “green steel” is steadily increasing. “A market for green steel is currently forming in Europe, and this development is being driven in particular by the European automotive industry.” Successfully into the future with “Greentec steel” In recent decades, Voestalpine has reduced air emissions and energy consumption to a technological minimum.
A further significant reduction in CO2emissions are only possible on the basis of a fundamental technological change. With Greentec steel, the Group will make its contribution to achieving its climate targets. In a first step, the steel and technology group is planning to gradually switch from coal-based blast furnace technology to green-powered electric arc furnace technology from 2027. In the long term, Voestalpine strives for CO2-neutral steel production based on green hydrogen and is already intensively researching promising breakthrough technologies.