ArcelorMittal’s €215 million Steelanol facility in Ghent, Belgium—designed to convert blast furnace gases into ethanol—is facing financial viability issues due to evolving EU regulations. Despite securing certification for ethanol use in the chemical sector, the plant has yet to receive approval for fuel applications, limiting its market potential.
The company highlights that new rules prevent it from counting CO₂ savings unless emissions are permanently stored, excluding ethanol used as fuel. Additionally, the plant’s connection to Belgium’s relatively carbon-intensive power grid complicates efforts to meet the 70% emissions reduction threshold required for recycled fuel classification.
ArcelorMittal warns that without regulatory adjustments, the project may become unsustainable, despite its potential to cut up to 120,000 tonnes of CO₂ annually. The company continues to engage with policymakers to seek solutions that recognize the environmental value of such circular technologies.
