The European Commission (EC) has approved EUR 1.3 billion in German funding for ArcelorMittal to reduce carbon emissions at its plants in Germany.

ArcelorMittal will use the funds to build a direct reduction plant and three new electric arc furnaces to replace two of the three blast furnaces and two of the four oxygen furnaces.

The new plant is scheduled to be put into operation in 2026. Its green crude steel production capacity will reach 3.8 million tons per year and is expected to reduce carbon emissions by more than 70 million tons within 16 years.

ArcelorMittal said the experience and expertise gained from the project will be shared with industry and academia.