ArcelorMittal Commits €1.3 Billion to an Electric Arc Furnace in Dunkirk: A Major Milestone for Low-Carbon Steel in Europe

The steelmaking group ArcelorMittal officially confirmed on February 10, 2026, its decision to invest in an electric arc furnace (EAF) at its steel production site in Dunkirk. This strategic €1.3 billion investment is part of a broader ambition to decarbonize both the French and European steel industries.

AN ELECTRIC ARC FURNACE TO REDUCE CO₂ EMISSIONS

The commissioning of the electric arc furnace, with an annual production capacity of 2 million tonnes of steel, is scheduled for 2029. It will enable the production of steel with three times lower CO₂ emissions compared with a traditional blast furnace (0.6 tonnes of CO₂ per tonne of steel using an EAF, based on a mix of recycled steel, hot briquetted iron (HBI) or direct reduced iron (DRI), and pig iron).

According to ArcelorMittal, this low-carbon production method, combining steel recycling with low-carbon electricity, represents a key lever for reducing the steel industry’s carbon footprint while maintaining Europe’s industrial competitiveness.

DECISIVE PUBLIC AND EUROPEAN SUPPORT

At the national level, the French government, represented during the announcement by President Emmanuel Macron and several members of the government, played an active role in creating favourable conditions for the project. In parallel, a long-term power supply agreement with EDF will ensure access to competitively priced low-carbon electricity for the future furnace.

FINANCING AND INDUSTRIAL MOMENTUM

The investment will be supported by France’s Energy Savings Certificates (CEE) scheme, which will cover up to 50% of the project. This regulatory mechanism encourages energy efficiency initiatives and projects aimed at reducing greenhouse gas emissions.

The project is also part of a broader industrial development strategy for the Dunkirk area, which is already attracting major industrial investments, including facilities linked to electrification and low-carbon value chains, alongside public policies designed to revitalise industrial zones and support the energy transition.

CHALLENGES AND FUTURE OUTLOOK

For ArcelorMittal, confirming this investment provides a tangible response to the competitiveness and environmental challenges facing the European steel industry. The company is also considering the possibility of replicating this electric arc furnace model at other European sites, in line with its broader strategy to transition towards cleaner steel production.

In a sector traditionally associated with high CO₂ emissions, this project marks a significant step towards a more sustainable steel industry. It also demonstrates how businesses and public authorities can work together to develop industrial infrastructure aligned with climate objectives.

Learn more

Find comprehensive information and up-to-date communication materials on the project’s official website: Concertation ArcelorMittal France Decarbonation – Home.

Watch the project manager’s interview: ArcelorMittal: Decarbonisation Programme Director Interview.

Read the press release here.