This strategy follows the planned commissioning of an electric arc furnace (EDP) in 2027, which will combine the production of steel based on environmentally friendly electricity with existing blast furnaces at the enterprise. According to the company, the transition will make it possible to close one blast furnace as early as 2029.
Expansion by increasing low carbon steel production capacity
Subject to the resolution of the remaining financing issues, Voestalpine plans to invest about 100 million euros in the next phase of the project by 2030. The EDP currently under construction is expected to produce about 850,000 tons of steel. annually since 2027. After the planned expansion, the annual production capacity is expected to increase to 1.5 million tons by 2030. The approved investment budget will focus on the modernization of the electricity supply system, the construction of a third secondary metallurgy line and the expansion of scrap logistics infrastructure.
Voestalpine said the expansion will reduce carbon emissions at the Donawitz plant by more than 90 percent from 2030. forward compared to the level of 2019. As part of the long-term transformation, the two blast furnaces and the sinter plant will eventually be decommissioned.
Greentec steel program is on schedule
According to Voestalpine, construction and technical work are proceeding according to plan. Key milestones completed in 2025 included the construction of an EDP furnace and the installation of infrastructure to ensure the supply of electricity and raw materials. The main goals for 2026 include the installation of basic equipment and the commissioning of electricity and scrap supply systems.
The Donawitz project is part of the Voestalpine greentec Steel program, which the company calls Austria's largest climate protection initiative. By integrating electric arc furnaces powered by renewable electricity sources into its steel mills, Voestalpine aims to reduce total carbon emissions by up to 30 percent by 2029 compared to 2019 levels, equivalent to almost 4 million tons of carbon dioxide per year. The volume of investments for the first stage of the Greentec Steel program remains approximately 1.5 billion euros.
