Sustainable Steel Production in the EU: Balancing Renewable Electricity and Hydrogen Demands
Key Ideas
- The EU aims to produce 1.7 to 1.9 million tonnes of domestic renewable hydrogen per annum by 2030 for green steel production.
- Renewable electricity demand for green iron and steel projects could reach 135 terawatt hours per year, equivalent to Sweden's annual consumption.
- Transparent planning and alignment with energy sector developments are crucial for the success of the transition to renewable electricity-based steel production.
- The EU's Leadership Group for Industry Transition emphasizes the importance of stakeholder collaboration in minimizing delays in green steel projects.
The report discusses the potential demand for renewable hydrogen and renewable electricity in the EU's steel sector, focusing on achieving green steel production. It highlights the need for 1.7 to 1.9 million tonnes of domestic renewable hydrogen by 2030 and an increase to 1.9 million tonnes by 2045 to support green steel production. The analysis also points out that renewable electricity demand for these projects may reach 135 terawatt hours per year. The lack of transparency in company plans may result in even higher figures for renewable energy demand. Although recycling scrap and importing hot briquetted iron could reduce demand for renewable hydrogen and electricity, it may lead to trade-offs like reduced self-sufficiency and impacts on employment. Transparent planning is essential to balance electricity demand across sectors and achieve decarbonization. The Leadership Group for Industry Transition emphasizes stakeholder collaboration to ensure the timely implementation of green steel projects in the EU.