PERTE for industrial decarbonization (RRP Phase 1: 2021-2023)

This is one of 12 PERTEs (which are strategic projects with a great capacity to drive economic growth, employment and the competitiveness of the Spanish economy, with a high component of public-private collaboration and transversal to the different administrations). On December 27, Ithe Council of Ministers approved the Strategic Project for Economic Recovery and Transformation (PERTE) for industrial decarbonization. The beneficiaries of this PERTE are the manufacturing industry sectors, including the manufacturing of non-metallic mineral products (including ceramics, cement, glass, among others), the chemical industry, oil refining, metallurgy and paper and pulp manufacturing. Regarding budget distribution: The financing linked to the line of aid for comprehensive action for the decarbonisation of the manufacturing industry of the PERTE industrial decarbonisation will be 2.3 billion euros, of which 800 million will be in the form of a grant and 1.5 billion will be in the form of a loan, to be executed from 2023 onwards. The funding linked to the line of aid to companies participating in the Hydrogen IPCEI will be 450 million euros in the form of a subsidy to be executed in 2023. The funding linked to the study of the support fund for carbon contracts for differences and the implementation of a pilot project will be 100 million euros. Financing linked to the development of highly efficient and decarbonised manufacturing facilities would consist of €150 million in grants and €100 million in loans

Winner of funding: The Government of Spain has pledged financial support to ArcelorMittal's steelmaking sites in Asturias and Sestao, Basque Country. The funding is part of Spain's Recovery and Resilience Plan and wil support the construction of an electric arc furnaces and DRI plant in Gijon. In April 2023, the government approved funding for EUR 450 million (~USD 474 million) to support a hydrogen project of Arcelor Mittal for the production of “green” steel

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