A step forward in Dunkirk — but far from deep transformation once promised
The Hague, Tuesday, 6 February 2026 – After a series of delays, SteelWatch cautiously welcomes ArcelorMittal’s announcement of a EUR 1.3 billion investment in the construction of a two million tonne capacity electric arc furnace (EAF) at Dunkirk, France, and retirement of one of two blast furnaces around 2030. The project represents a step in the right direction, though it is only a fraction of the original decarbonisation plans for Dunkirk, and the ultimate impact on climate emissions will depend on if the company plans to feed this new EAF with green iron.
According to ArcelorMittal, the new EAF will be fed with 60% scrap, and the rest with a mix of direct-reduced iron and liquid pig iron from one of its current blast furnaces. Without firm plans to either invest in H2-DRI, or procure genuinely green hot briquetted iron (HBI), the project risks becoming a partial clean-up of the steelmaking stage while coal-based iron continues upstream.
Currently, Dunkirk is reported to be the most polluting industrial site in France, emitting 8.5 million tonnes of CO2 in 2024. This accounts for around 14% of total industrial emissions in France. According to ArcelorMittal, this will reduce steelmaking emissions by two thirds compared to the blast furnace route, but the remaining emissions are still significant and above the near-zero threshold, due to its reliance on blast furnace iron.
The company links the decision to the improved EU trade protection, carbon border measures and French state backing. Many of the policy conditions the steel companies have long called for are now emerging. That makes this the moment to commit to coal phase-out and investment in low-emissions iron, not just new melting capacity.
SteelWatch calls on ArcelorMittal to:
- Set a firm retirement date for blast furnace capacity at Dunkirk
- Commit to commercial-scale low emissions iron supply (constructing a H2-DRI plant or procuring green HBI)
- Publish transparent, financed transition plans aligned with EU climate goals
“Confirming an electric arc furnace at Dunkirk is a step forward after prolonged hesitation. But it is still far from the transformation ArcelorMittal previously said was needed and from what real decarbonisation requires. One furnace does not make a climate strategy. The real test is whether the company now follows through on phasing out coal-based ironmaking, not just cleaning up the final step.” said SteelWatch Associate, Pascal Husting.
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Communications, SteelWatch (Turkey, CET)
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