Moeve, ArcelorMittal sign Spain’s largest energy saving certificate deal for Gijon EAF

• Agreement covers annual energy savings equivalent to 2.1 TWh
• Gijon EAF to cut CO2 emissions by over 35% from current levels

Moeve, a Spanish low-carbon and sustainable energy solutions provider, and ArcelorMittal have signed Spain’s largest-ever Energy Saving Certificate (CAE) transaction, with annual certified energy savings of 2.1 TWh, providing fresh funding for the steelmaker’s decarbonisation programme at its Gijon plant in northern Spain.

The agreement covers annual energy savings equivalent to 2.1 TWh, or 2.1 billion kWh, according to a statement from Moeve. The transaction is ten times larger than the previous biggest CAE deal in Spain. The savings account for more than 5% of Asturias’ total final energy consumption.

The proceeds from monetising the certificates will support ArcelorMittal’s investment in an electric arc furnace (EAF) at its Gijon steelworks, where construction is in its final stages. The project is central to the company’s decarbonisation strategy in the Asturias region.

The Gijon EAF will have annual capacity to produce 1.1 million tonnes (mnt) of semi-finished steel, supplying the site’s rail and wire rod rolling mills. The furnace will use a blend of ferrous scrap, direct reduced iron (DRI), hot briquetted iron (HBI), and molten iron, replacing part of the existing blast furnace-based production route with a lower-carbon process powered by more renewable electricity.

ArcelorMittal said the EAF will cut carbon dioxide emissions by more than 35% during its initial phase of operation compared with the current production route. Once the transition is completed, greenhouse gas emissions from steelmaking operations in Asturias are expected to fall by up to 1 mnt annually.

The company had originally targeted first steel from the Gijon EAF in the first quarter of 2026, but the project has been delayed. Its latest update maintains a 2026 commissioning target, with construction nearing completion.

Spain’s CAE scheme awards electronic certificates for verified reductions in final energy consumption achieved through energy efficiency projects. Each certificate represents a saving of 1 kWh of final energy, covering reductions across electricity and fuel use rather than electricity consumption alone.

The certificates can be sold to recover part of the investment in energy efficiency projects, while companies with mandatory energy-saving obligations can use them to meet part of their contribution requirements under Spain’s National Energy Efficiency Fund.

Carlos Barrasa, Senior Vice President of Commercial and Clean Energies at Moeve, said the agreement would improve the sustainability and competitiveness of energy-intensive industries such as steel and reinforce the role of CAEs in supporting industrial decarbonisation.

Philippe Meiran, Chief Executive Officer of ArcelorMittal Spain, said the agreement marked an important step in accelerating the decarbonisation of the Gijon plant and would enable the company to produce steel with significantly lower carbon emissions in Asturias.

Note: This article has been published in accordance with a content exchange agreement between SteelDaily and BigMint.