Belgian federal government promises ArcelorMittal 10 years of cheap power

The Belgian federal government is promising ArcelorMittal 10 years of cheap, green power for its Ghent site. It thus hopes to encourage the steel and mining company to continue investing in the country. Indeed, plans are already on the table for the possible construction of two electric blast furnaces, good for a capacity of 400 megawatts.

The Belgian federal government signed a letter of intent on Wednesday in an effort to keep ArcelorMittal, a major industrial employer, in Flanders. The government is promising the Ghent site 10 years of low-carbon power at market rates. The steel and mining company currently employs some 4,500 people in Ghent and indirectly provides another 1,100 jobs through contractors at the site. 

ArcelorMittal is looking at building two electric blast furnaces in Belgium, good for a capacity of 400 megawatts. By doing so, the company aims to drastically reduce its CO2 emissions. The investment was already announced in 2021 as Belgium's biggest-ever climate investment but was put on hold by Corona and the energy crisis. 

The final decision on that investment is expected in the fourth quarter of this year. The go-ahead must come from the international board, which also enjoys generous support in France and Germany. With this federal pledge and the €250 million investment approved by the Flemish government on Tuesday, Belgium is already signalling its continued support for ArcelorMittal.

^{#FlandersNewsService | A worker is pictured at the ArcelorMittal Gent production plant © BELGA PHOTO NICOLAS MAETERLINCK}