Next groundbreaking for Austria’s largest climate protection program: Just a few weeks after breaking ground at the Donawitz site, voestalpine has begun official construction work on greentec steel at the group’s headquarters in Linz. With the construction of green-powered electric arc furnaces (EAF) at both sites, voestalpine plans to save 4 million tons of CO₂ annually.
In the first step of the phased plan, one electric arc furnace each is to be built in both Donawitz and Linz. Integration into steel production will make it possible to electrify energy-intensive processes and thus save around 30% in CO₂ emissions from 2027. This corresponds to a saving of almost 4 million tons of CO₂ or 5% of domestic emissions per year. greentec steel is thus the largest climate protection program in Austria.
From 2030, the replacement of two further blast furnaces in Linz and Donawitz and investment in a further electric arc furnace in Linz are planned. In order to achieve the net zero target by 2050, the company is already researching several new processes and investing in pilot projects that show new ways of producing steel.
Herbert Eibensteiner, CEO of voestalpine AG says, “The two groundbreakings in Linz and Donawitz are more than a symbolic act and the start of a construction project. They are the visible cornerstone for voestalpine’s green future and an important milestone for climate protection in Austria.”
Green Steel with quality
Quelle: voestalpine
The investment volume for both projects amounts to €1.5 billion, of which Linz accounts for around €1 billion. From 2027, the new furnace is expected to produce around 1.6 million tons of CO₂-reduced steel annually in full operation.
In order to maintain high product quality, the electric arc furnaces will use a mix of scrap, liquid pig iron and HBI (hot briquetted iron).
Hubert Zajicek, Member of the Management Board of voestalpine AG and Head of the Steel Division based in Linz, emphasizes: “A basic prerequisite for the operation of the plants is the sufficient availability of electricity from renewable sources at economically feasible prices. Even more important is the provision of an efficient and integrated grid infrastructure.”
Construction work in Linz
The major construction site consists of a total of 20 projects and is spread across the entire plant site – above and below ground: the highest construction site point is at around 60 m, the lowest at -25 m, he said. As part of the site clearance, a new raw material supply system with an approx. 750 m long conveyor belt bridge is to be built, various storage buildings relocated, new roadways constructed and various adaptation work carried out in the steel mill.
The contract for the construction of the EAF plant is scheduled to be awarded in January 2024. In the coming months, the new conveyor belt bridge will be completed and the new raw material supply system will be commissioned. Subsequently, the old raw material supply system and some ancillary equipment can be dismantled to make room for the EAF.
From the end of 2024, voestalpine plans to build the hall for the EAF as well as a so-called microtunnel for the new 220kV power line that will supply the EAF with green electricity from 2027. The tunnel, with a diameter of around 2 m, is to be bored at a depth of around 25 m between the transformer station and the EAF. The particular challenge here is that since the tunnel would heat up to around 280°C without cooling, it has to be flooded with groundwater for cooling.
A project team of around 250 employees is responsible for implementing the major construction site. More than 230 external companies, including 60 local firms, have already been contracted in the course of the construction project. (Source: voestalpine)
Significant economic effects throughout Austria
A study conducted by the Institute of Industrial Sciences in September 2023 shows that the construction of the two EAFs will trigger significant economic effects for Austria. The investments at the two sites will generate Austria-wide value added of €767 million during the construction phase alone. This includes all products and services directly, indirectly and induced by the investment. In addition, around 9,000 jobs will be secured in Austria during the construction phase.
Source: Goruma
The investment of around €1 billion made at the Linz site creates Austria-wide value added of €530 million, of which up to €367 million is attributable to Upper Austria. The investment in Linz will secure around 6,200 jobs in Austria during the construction phase, of which up to 3,800 will be in Upper Austria.
voestalpine is committed to global climate targets and is pursuing a clear plan to decarbonize steel production with greentec steel. In the 2022/23 business year, the Group achieved an operating result (EBITDA) of €2.5 billion on revenue of €18.2 billion and employed around 51,200 people worldwide.
