The official start of construction work at the voestalpine Donawitz site began a few weeks ago. The traditional groundbreaking ceremony for greentec steel took place at the group's headquarters in Linz. First, an electric arc furnace will be built in Linz and Donawitz. The integration of the two green electricity-powered electric arc furnaces into steel production makes 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 the largest climate protection program in Austria.
Future electric arc furnace
The replacement of two further blast furnaces in Linz and Donawitz and the investment in another electric arc furnace are planned in Linz from 2030. In order to achieve the net zero target by 2050, the group is already researching several new processes and investing in pilot projects that show new ways of producing steel. The investment volume for both projects is 1.5 billion euros, of which around 1 billion euros is attributable to Linz.
“The two groundbreakings in Linz and Donawitz are more than a symbolic act and the beginning of a construction project. They are the visible foundation for voestalpine’s green future and an important milestone for climate protection in Austria,” says Herbert Eibensteiner, CEO of voestalpine AG.
Construction of the electric arc furnace (EAF) will begin in Linz in 2024. Just three years later, the EAF will go into operation and, when fully operational, will produce around 1.6 million tons of CO2-reduced steel annually. In order to maintain the high product quality, a mix of scrap, liquid pig iron and so-called HBI (Hot Briquetted Iron) is used in the electric arc furnaces.
“A basic requirement for the operation of the systems is the sufficient availability of electricity from renewable sources at economically feasible prices. Even more important is the provision of a powerful and integrated network infrastructure,” explains Hubert Zajicek, member of the board of voestalpine AG and head of the Steel Division based in Linz.
Construction progress
The large construction site is spread across the entire factory site and consists of a total of 20 projects - above and underground: the highest construction site point is around 60 meters, the lowest at minus 25 meters. As part of the construction site clearance, a new raw material supply with an approx. 750 meter long conveyor belt bridge will be built, various storage buildings will be relocated, new routes will be built and various adaptation work will be carried out in the steelworks. The contract award for the construction of the electric arc furnace is planned for January 2024. In the coming months, the new conveyor belt bridge will be completed and the new raw material supply will be put into operation. The old raw material supply and some ancillary systems can then be dismantled to make room for the EAF. From the end of 2024, the hall for the EAF will be built as well as a so-called microtunnel for the new 220kV power line, which will supply the EAF with green electricity from 2027. The tunnel, with a diameter of around 2 meters, will be drilled at a depth of around 25 meters between the substation and the EAF. The special challenge: 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 large construction site. More than 230 external companies, including 60 local companies, have already been commissioned as part of the construction project.
Significant economic effects
The construction of the two electric arc furnaces in Donawitz and Linz will have significant economic effects, as a study by the Industrial Science Institute from September 2023 shows. The investments at the two locations generate Austria-wide added value of 767 million euros during the construction phase alone. This includes all direct, indirect and induced products and services resulting from the investment. In addition, around 9,000 jobs in Austria will be secured during the construction phase.
The investment of around 1 billion euros made in the Linz location creates an Austria-wide added value of 530 million euros, of which up to 367 million euros is attributable to Upper Austria. The investment in Linz will secure around 6,200 jobs in Austria during the construction phase, including up to 3,800 in Upper Austria.
