EIB to provide €300 million loan to Europe’s third largest steelmaker to boost green steel production

The European Investment Bank (EIB) announced that it is providing voestalpine AG, a steel and technology company, a loan of €300 million. voestalpine AG is the third-largest steelmaker in Europe.  

The primary intention of funding the steelmaker is to support the research and development (R&D) of green steel production. 

The funds endowed will be diverted to the company’s research and development (R&D) program over four years. The goal of investing in the R&D program is to “optimize the manufacturing processes, increase energy and raw material efficiency, and extend product life.” 

Also read: EIB and Cepsa sign €285 million loan agreement for biofuels plant 

Thomas Östros, EIB Vice-President in charge of activities in Austria said, “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.” 

He added, “Therefore, we need to find ways to produce iron and steel more sustainably – R&D is key to doing so. I very much welcome our new cooperation with voestalpine, which will help to decarbonise their operations while delivering high-end products.” 

Also read: EU backs 650-billion-euro plan through climate financing initiative 

Voestalpine aims to drastically reduce its environmental and carbon footprint by 2030 and to achieve carbon neutrality in its production by 2050. This loan will facilitate progress towards that goal through intensive research.  

The steel and technology group in Austria is highly focused on research, employing roughly 800 R&D staff across 70 firms and collaborating with 100 scientific partners globally.