The European Investment Bank (EIB) has approved a EUR 300 million (USD 321.2m) loan for Austrian technology group Voestalpine (VIE:VOE) to bolster its research and development (R&D) efforts in green steel production.
Voestalpine intends to utilize the funding over a four-year R&D program aimed at enhancing manufacturing processes, improving energy and raw material efficiency, and extending product longevity.
Under its Greentec steel initiative, Voestalpine plans a phased implementation strategy. Initially, the company aims to reduce carbon dioxide emissions by up to 30% from 2027, achieved through the transition from coal-fired blast furnaces to electric arc furnaces powered by renewable electricity. This reduction equates to nearly 5% of Austria's annual carbon dioxide emissions.
Voestalpine's broader strategy targets significant environmental footprint reductions by 2030, with the ultimate goal of achieving carbon neutrality in its production by 2050.
As part of its sustainability efforts, the Austrian group has also secured electricity supply from a 29.7-megawatt wind park in Styria since September 2023, dedicated to powering its green steel production.
