The new furnaces will enable Voestalpine to produce around
2.5 million tonnes of CO2-reduced steel per year, thus cutting
its Co2 emissions by up to 30% and Austria's overall emissions
by 5%, according to the company.
($1 = 0.9284 euros)
(Reporting by Tristan Chabba and Anastasiia Kozlova in Gdansk,
Editing by Friederike Heine)
(adds CEO quotes, background on steel production)
March 22 (Reuters) - Voestalpine's supervisory
board has approved an investment of 1.5 billion euros ($1.62
billion) in CO2-reduced steel production as part of a move to
become carbon-neutral by 2050, the Austrian specialty steelmaker
said in a statement on Wednesday.
Steel production accounts for about 7% to 9% of global
carbon dioxide (CO2) emissions, so efforts to reduce them is one
of the key targets in the fight against climate change.
Two electric arc furnaces are to be built in Voestalpine's
plants at Linz and Donawitz by 2027, and are foreseen to replace
one blast furnace in each of these locations by 2030.
Voestalpine has already secured 100,000 tonnes of green
steel in orders, Chief Executive Officer Herbert Eibensteiner
said in a call following the announcement.
Though the company expects to receive funding for the
electric arc furnaces, it still anticipates having to assume the
majority of costs, he added.
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