European Commission Approves “Top Gas Recycling” Assistance for ArcelorMittal Eisenhuettenstadt

The European Commission has authorized an investment aid of €30.18 million (US$41.1 million) granted by Germany towards ArcelorMittal Eisenhuettenstadt's Top Gas Recycling (TGR) project.

TGR is a process that enables the separation of carbon dioxide from other emission gases as they come out of the furnace and recycles the carbon dioxide-free emissions for steel production. The use of TGR is expected to reduce carbon dioxide emissions by 16 percent, compared to existing technology. This is the first ever application of TGR technology on an industrial scale. The EC concluded that the environmental benefits triggered by the aid would largely outweigh potential distortions of competition.

Joaquin Almunia, the EC’s Vice President of Competition, says, “The Top Gas Recycling technology will enable considerable reductions of carbon dioxide emissions in the steel sector. The German measure is a contribution to the key objective of fighting climate change without unduly distorting competition."

TGR was chosen out of 80 processes as one of the four most promising technologies to reduce carbon dioxide emissions in steel production. The project notified by Germany concerns only the separation of carbon dioxide without transport and storage.

The EC investigation found that without assistance, Arcelor Mittal Eisenhueteenstadt would not be able to translate the technology for an industrial-scale application.

It is expected that companies participating in a ULCOS consortium, representing about 90 percent of steel production within the European Union, will share the technology gleaned from the project.