EIB Funds voestalpine’s Green Steel Initiative with €300 Million Loan

EIB Funds voestalpine’s Green Steel Initiative with €300 Million Loan

(IN BRIEF) The European Investment Bank (EIB) has allocated a €300 million loan to voestalpine AG, Europe’s third-largest steelmaker, to support a four-year research and development initiative aimed at enhancing sustainability and reducing carbon emissions. Key focuses include optimizing manufacturing processes, improving energy efficiency, and advancing product longevity. Central to voestalpine’s strategy is the development of greentec steel, targeting a substantial reduction in CO2 emissions by 2029 through innovative technologies.

(PRESS RELEASE) LUXEMBOURG, 2-Jul-2024 — /EuropaWire/ — The European Investment Bank (EIB) has extended a €300 million loan to voestalpine AG, Europe’s third-largest steelmaker, to fund a four-year research and development program aimed at reducing environmental impact and carbon emissions. The initiative, scheduled until 2028, focuses on advancing manufacturing processes, enhancing energy and raw material efficiency, and extending product life cycles. Central to voestalpine’s strategy is the development of greentec steel, aimed at achieving up to a 30% reduction in CO2 emissions by 2029 through the adoption of electric arc furnaces powered by renewable electricity, thus laying the groundwork for carbon-neutral steel production by 2050.

Thomas Östros, EIB Vice-President overseeing Austrian activities, emphasized the significance of sustainable steel production in maintaining European industrial competitiveness and job creation while addressing global climate challenges. The partnership with voestalpine underscores the EIB’s commitment to fostering innovation in decarbonizing industrial sectors.

Gerald Mayer, CFO of voestalpine AG, highlighted the company’s dedication to remaining a global leader in sustainable steel production through ongoing investments in digital and resource-efficient technologies. The greentec steel initiative represents a substantial climate protection effort, aiming to significantly reduce Austria’s CO2 emissions.

voestalpine, renowned for its research-intensive approach with over 800 R&D employees globally, aims to leverage these investments to strengthen its position in high-value product markets while advancing towards a sustainable future in steel manufacturing.

Background information

The European steel industry is a global leader when it comes to innovation and environmental sustainability. It directly employs around 306 000 people, and through indirect and induced effects supports 2.5 million jobs. With a turnover of €130 billion the steel industry is a key sector in the European Union.

A competitive steel industry is fundamental for the technological leadership of European manufacturing industries. Construction, carmakers, mechanical engineering and the appliance industry are the main customers of European steelmakers. The success of their products, as well as the degree of innovation that enables them to stand out from other suppliers outside the European Union, are frequently determined by the technical performance and quality of the steel they use.

EIB Group

The EIB Group is the long-term lending institution of the European Union. It finances sound investment contributing to EU policy goals and works closely with other EU institutions to advance shared policy priorities, like equitable growth and a just transition to climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing last year. €1.26 billion was provided in Austria.

All new projects financed by the EIB Group are aligned with Paris Climate Accord, while investments in unabated fossil fuels are not eligible for funding. The EIB Group is on track to deliver on its commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030, making good on its pledges under the Climate Bank Roadmap. Over half of the EIB Group’s annual financing is signed for projects directly contributing to climate change mitigation, adaptation and a healthier environment, while nearly half of the EIB’s financing inside the European Union is channelled into cohesion regions, where per-capita income is lower, highlighting the Bank’s commitment to equitable growth and the convergence of living standards.

The voestalpine Group

voestalpine is a world-leading steel and technology group with a unique combination of materials and processing expertise. The voestalpine group, which operates globally, has around 500 companies and locations in more than 50 countries on all five continents. The voestalpine group has been listed on the Vienna Stock Exchange since 1995. With its premium products and system solutions, voestalpine is a leading partner to the automotive and consumer goods industries, as well as to the aerospace and energy industries. The company is also the global market leader in railway systems, tool steel, and special sections. voestalpine is committed to the global climate goals and has a clear plan for transforming steel production with its greentec steel programme. In FY 2023/24, the group generated revenue of €16.7 billion, with an operating result (EBITDA) of €1.7 billion. It has around 51 600 employees worldwide.

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SOURCE: European Investment Bank


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