ArcelorMittal: a €1,3Bn electric arc furnace to "decarbonise steel production" in Dunkirk
An electric arc furnace (EAF) will be built at the Dunkirk site of ArcelorMittal, thanks to a €1,3Bn investment "which marks a major step in the decarbonisation of its' steel production in France", announced the steel manufacturer on 10/02/2026.
ArcelorMittal was notably welcoming the French President, Emmanuel Macron to present its new electric arc furnace, which "will produce steel with three times less CO₂ compared with a blast furnace (0.6 tonne CO₂ per tonne of steel in the EAF)".
Funding "will be supported by Energy Efficiency Certificates (CEEs), a regulatory mechanism that promotes energy savings and CO₂ reduction. This will represent 50% of the €1.3Bn investment".
The steel manufacturer specifies that "the start-up of this 2Mt EAF is scheduled for 2029".
ArcelorMittal added that the European Commission has recently published "important regulatory proposals, regarding :
• the limitation of unfair imports through the Tariff Rate Quota (TRQ) ;
• and the reforming of the Carbon Border Adjustment Mechanism (CBAM
Carbon Border Adjustment Mechanism
)".
Despite the appreciation of "the progress made by the European Commission to better protect the European steel industry", ArcelorMittal states that "it is now important to implement the TRQ and adapt the CBAM to close the remaining loopholes as swiftly as possible".
In these circumstances, the steel manufacturer "expects the Commission to restore fair and competitive conditions in the European steel market, thus securing a sustainable future for steel production within the EU".
ArcelorMittal also announced the launching a new electric steel production unit this quarter at its Mardyck site near Dunkirk. "With an investment of €500 M, this new plant, equipped with the latest technology, represents the group's largest investment in Europe over the last ten years, excluding decarbonization".
"We will review the possibility of building further EAFs elsewhere in Europe" (G. van Poelvoorde, CEO Europe)
According to Geert van Poelvoorde, CEO Europe, "the decision to proceed with building an EAF in ArcelorMittal Dunkirk, to produce low-carbon emissions steel at scale for our customers, has been made possible because we now have the conditions in place to make this project a success".
"The new tariff-rate quota will stem the tide of unfair imports into the EU, while the CBAM is now operating to create a level playing field for European producers. In France, the support of the government and public authorities has been vital", he added.
"We will review the possibility of building further EAFs elsewhere in Europe, taking a cautious attitude that is consistent with our economic decarbonisation approach. Having a strong steel industry in each European country in which we operate is a crucial foundation for thriving industry, and I hope that the conditions created in France can be replicated elsewhere so that we have a strong business case to invest further in the future."
The signed contrat with EDF "major step" in ArcelorMittal's energy strategy in France
ArcelorMittal also mentioned the recent contract signed with EDF in December 2025 (a Nuclear Power Production Allocation Contract), allocating to the steel manufacturer a "share of the capacity of its operating nuclear fleet for a period of 18 years". This long-term supply of low-carbon electricity represents "a major step" in its energy strategy in France.
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