(source: Courtesy of USSK)
Steelmaker U.S. Steel Košice (USSK) has welcomed the allocation of €300 million from the EU’s Recovery and Resilience Plan to decarbonise its steel production, but pointed out total costs for the process are forecast to exceed €1 billion.
USSK, one of the biggest greenhouse gas emitters in Slovakia, is one of three companies which has applied for a grant from the Recovery Plan.
Company spokesman Ján Bača said any potential future investments in decarbonisation are contingent on other measures. These include grant support via the Modernisation Fund, extending the time available to draw money from the Recovery Plan, the identification of investment partners, competitive long-term electricity prices, and approval by the Unites States Steel Corporation’s board of directors.
Replacing blast furnaces
USSK plans to replace two of its three blast furnaces with electric arc furnaces to make its steel production greener. Electric furnaces would also significantly reduce its dependence on ore and coke imports from Russia and Ukraine, and lower costs on emission allowances.
Based on plans submitted as part of an environmental impact assessment last year, the total cost of modernising the factory could be as much as €1.3 billion.
The modernisation would include construction of a new metallurgical plant combining production, casting and rolling of steel with new progressive technologies. It would have two electric arc furnaces, off-site steel processing facilities and one continuous casting and hot rolling line with steel production capacity of up to 3.1 million tonnes per year.
Three companies allocated funds
The Environment Ministry is to allocate a total of €317 million to three companies for green investments. While USSK will get most of that, cement producer Danucem Slovensko and brick maker Wienerberger will receive €8.4 million each.
“Through these projects, Slovakia will be able to cut its emissions by more than 3 million tonnes of CO2 equivalent annually by 2026 at the very latest,” said Environment Minister Milan Chrenko.
This figure is reportedly the same as the annual greenhouse gas emissions of half a million Slovaks.
The measures are expected to ensure a one-fifth reduction in all carbon dioxide emissions in Slovakia by companies participating in emission trading last year.
Meanwhile, it has been reported that three large steel companies are interested in taking over American steel group U.S. Steel, which owns USSK - American companies Cleveland-Cliffs and Esmark and Indian-European firm ArcelorMittal, according to the Denník N daily.
