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ArcelorMittal and the French government leading an industrial cluster in Dunkirk for the scaling up of climate technologies

Challenge

Dunkirk’s industrial cluster emits 16 megatonnes (Mt) of CO2 annually, contributing to 20% of France’s industrial emissions. The challenge was to significantly reduce emissions in line with national and international climate targets (55% GHG emissions reduction by 2030 and net zero by 2050), while maintaining economic growth and operational efficiency.

 

Solution

Through the France 2030 investment plan, the French government allocated €5.6 billion to support the transition to a green economy via new business models such as Zone Industrielle Bas Carbone (ZIBAC). Dunkirk’s ZIBAC is a consortium operated by Euraénergie, which oversees and steers all the projects to drive unified territorial sustainability development efforts like the “DKarbonation” project. Key private partners from various sectors, such as energy, logistics and chemicals, have joined forces with key public actors – such as centralized clearance for import (CCI) territory, the urban community and the maritime port – to operate within the industrial cluster of Dunkirk. As one of the key partners, ArcelorMittal has planned to install electric furnaces and blast furnaces with direct reduced iron (DRI) technology and implement CO2 capture technologies, aiming to capture 4,400 tons of CO2 annually. The French state directly contributed to support ArcelorMittal with a €850 million subsidy for decarbonization and helped to structure ZIBAC with €17 million, including €4 million for feasibility studies on innovative projects like low-carbon hydrogen production and a “heat highway”. 


Impact

With over 460 companies involved, Dunkirk is set to become a leading European hub for the green industry, reducing its carbon footprint and aligning with France’s net-zero goals by 2050. This public-private collaboration is expected to enhance the attractiveness of the industrial cluster, stimulating economic growth while ensuring a sustainable industrial ecosystem. The collaboration between public and private entities exemplifies a robust model for achieving regional decarbonization objectives.

Sector
Mining & Metals
Year published
12 December 2024
Stage
III - Drive systemic collaboration
Pillar
8 - Mobilize ecosystems for net-zero infrastructure and innovation