ArcelorMittal Belgium takes a step towards electrification

ArcelorMittal in Belgium began construction of the new Baekeland high-voltage substation after a groundbreaking ceremony on December 15, attended by Flemish Ports Minister Annick De Ridder, Port Alderman Sophie Braque and the heads of Elia and the North Sea Port, as well as ArcelorMittal in Belgium, Frederik Van De Velde.

ArcelorMittal Belgium will become the first industrial consumer to be connected directly to the 380 kV grid once the plant is operational in 2030. The steel company has signed a connection agreement with Elia as part of its plan to switch to electric furnaces, which will require significantly more capacity. The existing voltage of 150 kV is not enough for future equipment. The upgrade is described as an important step in the company's decarbonization strategy.

"Thanks to this innovative project, we are taking an important step towards the production of electrical steel. As soon as the prerequisites are met, we will be ready to produce low-carbon steel on an industrial scale," Van De Velde said in a note obtained by Kallanish.

The substation will become a key node of the Belgian electricity grid. It will receive electricity via cables and overhead lines, and transformers will convert electricity to various voltage levels for large industrial consumers. The project is expected to significantly improve the energy supply to the port area and the surrounding industry, while contributing to a broader energy transition in the region.

ArcelorMittal Belgium currently uses two blast furnaces. The company plans to build two blast furnaces, gradually decommissioning existing blast furnaces and planning to reduce CO2 emissions by 50%. In Belgium, ArcelorMittal operates four steel mills located in Ghent, Gil, Genk and Liege, generating revenue of approximately 5 billion euros ($5.84 billion) and employing about 5,000 people.

A steel mill in Belgium is implementing the CCU Steelenol project. In June, the steel producer warned that a 215 million euro plant operating in Ghent could be closed because it is unprofitable due to current EU regulations.

Van De Velde said last month that limited demand for crude steel was a threat to ArcelorMittal Belgium's decarbonization process. Speaking at a hearing in the Belgian federal Parliament, Van De Velde stressed that the current production volumes of environmentally friendly steel are insufficient to justify further large-scale investments or achieve the productivity of 2 million tons of environmentally friendly steel per year required for the construction of the first