Voestalpine secures €300 million EIB loan for green steel production

Austrian steel and technology group voestalpine will receive a €300 million loan from the European Investment Bank (EIB) for research and development of environmentally friendly steel production. This is stated in the EIB report.

The funding will be used for voestalpine’s four-year research and development (R&D) program, which aims to optimize production processes, improve energy and raw material efficiency, and extend product life.

The main focus will be on greentec steel, a project to reduce CO2 emissions by 30% in 2029 compared to 2019 by partially replacing blast furnaces with electric arc furnaces powered by green electricity.

Overall, voestalpine aims to significantly reduce its environmental footprint and carbon emissions by 2030 and achieve carbon neutrality by 2050.

«Steel manufacturing is responsible for a significant share of global CO₂ emissions. At the same time, it is fundamental for the competitiveness and technological leadership of European industries and for millions of jobs across the continent. Therefore, we need to find ways to produce iron and steel more sustainably – R&D is key to doing so,» said Thomas Östros,, EIB Vice President responsible for Austria.

According to voestalpine CFO Gerald Mayer, by continuing to invest in new products and processes, the company will be able to strengthen its position as a global player in demanding market segments. The company’s research and development activities are primarily focused on digital and resource-saving products and processes.

In June 2024, voestalpine unveiled its Green Financing Framework. With its launch, the company laid the groundwork for issuing green bonds and other environmental financing instruments.