ETC report: Production of »green« steel competitive in industrialized countries
Post date: 06/04/2023 - 11:46
The price of »low-carbon« electricity for the production of green hydrogen as well as for direct use is the decisive factor for the question whether a competitive production of »green«, i.e. at least approximately CO2-neutral steel can be established in a country. This is one of the main findings of a report by the Energy Transitions Commission (ETC). The international association of experts from the energy and financial sectors, industry and non-governmental organizations concludes that »the financial gap for doing so is smaller than previously thought.« Specifically, the report examined conditions in the United Kingdom, Spain, France, and the United States (»Unlocking the First Wave of Breakthrough Steel Investments - International Opportunities: United Kingdom, Spain, France, and the United States«). Changed framework conditions due to measures taken by the US government and the EU have »put a viable investment case within reach« in these countries.
The global pipeline for near zero-emission steel production projects will need to triple in the next three years, according to the ETC, to ensure 190 million tons per year are available by 2030. This, in turn, is indispensable for achieving global climate targets, because steel production today accounts for seven percent of global CO2 emissions and the demand for steel – also for the energy transition – is expected to increase.