VOESTALPINE STEEL INNOVATION RDI

The project will support the promoter's research, innovation and development (RDI) programme over a 4-year-period (2024-2028). R&D activities focus on: - smarter iron and steelmaking processes with a lower footprint; - new high-tech steel and special steel products.

The aim of the RDI investments is to support the promoter's long-term competitiveness, maintain its technological leadership, create new innovative steel products and develop steel manufacturing processes with lower footprints by, among others, adapting its product portfolio to customer requirements and key industry trends.

The project fully supports the Bank's Public Policy Goal 'Innovation, Digital and Human Capital - Research, Innovation and Digital' and partially CA&ES climate mitigation - RDI. The project concerns private sector RDI for (i) smarter iron and steelmaking processes with a lower footprint and (ii) new high-tech steel and special steel products. While the outcome and ultimate commercialisation of R&D activities are highly uncertain the supported project is associated with positive knowledge externalities. They are generated through the promoter's collaboration with customers, other steel producers, universities and research institutes. In addition, the outcome of the R&D activities, if successful, will as well lead to multiple positive environmental and climate externalities. Given the wide range of sectors in which the promoter's products will be used, the knowledge spill-overs will generate benefits for society and for many sectors of the economy that are greater than those captured by the investor's financial returns. The Bank's contribution to the project is underpinned by a combination of advantageous terms, a meaningful loan amount as well as a signalling effect in terms of confidence in the business model, thereby facilitating the project's financing and full implementation.

RDI activities will be carried out in existing facilities without changing their already authorized scope and hence are not expected to require an Environmental Impact Assessment (EIA) under the directive 2014/52/EU amending directive 2011/92/EU. It will be assessed during appraisal if any of the R&D related Capital expenditures into scale pilots installation require an EIA or a screening decision. This is not expected to be the case.

The promoter is a private company not operating in the utilities sector and does not have the status of a contracting authority. It is thus not subject to EU rules on public procurement.