Spain allocated for ArcelorMittal €17.1 million in compensation for indirect emissions

The Spanish government has paid the world’s largest steel producer, ArcelorMittal Corporation, €17.1 million as part of a mechanism to offset the costs of indirect greenhouse gas emissions. Eurometal reports about it with the reference to the Italian Ministry of Industry, Commerce and Tourism.

“The competitiveness of the large industry is one of the priorities on the government’s agenda, in addition to guaranteeing a competitive energy price,” says Minister Reyes Maroto. “This grant shows the government’s commitment to reinforcing the industrial capacities and employment of a key sector in Spain, at a time when it is necessary to increase the weight of the industry to accelerate the economic and social recovery.”

Total support for Spain’s energy-intensive industry is €244 million, of which the steel sector accounts for 37.5% and the aluminum sector for 15%.

The aid is part of Spain’s energy support package for major industries. It includes electricity bill compensation, which is designed to finance renewable energy, high-efficiency cogeneration and direct aid to gas-consuming companies.

As GMK Center reported earlier, the government of Spain has given guarantees to the domestic steel industry that in case of an energy crisis it will provide the industry with all necessary energy resources. In recent months, the country’s government has allocated more than €850 million to support local gas and electricity-intensive industries.

The leading steel producer ArcelorMittal has temporarily stopped or announced the stoppage of about 7 million tons of the corporation’s annual capacity across Europe. Among them is the Spanish rolling mill Acería Compacta de Bizkaia (ACB). The company decided not resume work after summer maintenance.

Spain, in October 2022, reduced steel production by 9.6% compared to the previous month – to 913,000 tons. In January-October 2022, steel production in the country amounted to 9.915 million tons, which is 18.5% less than in the same period of 2021.