European countries granted €10.5 bln for decarbonization of the...

European countries granted €10.5 bln for decarbonization of the steel sector in 2023-2024 — GMK Center

The main recipient of state aid in the EU is ArcelorMittal – up to 28% of the total, as the company is the largest steelmaker in Europe, has a wide presence and is a pioneer of the green transition in the steel industry with well-developed decarbonization roadmaps.

European governments plan to allocate aid in different forms: direct grants, soft loans, OPEX compensations etc. European Commission assumes that all support measures will contribute to the achievement of the EU Hydrogen Strategy, the European Green Deal targets and fast forward the green transition in line with the REPowerEU Plan. The projects that received state support mainly aim at transition from BF-BOF to DRI-EAF route. But steel companies face the challenge of obtaining permits for new construction when pursuing decarbonization projects in the EU..