Green steel could require up to 19% of EU’s renewable hydrogen production

The European steel industry, responsible for approximately 5% of CO2 emissions, faces significant pressure to reduce carbon emissions by 55% by 2030 to meet climate goals. According to a recent analysis from the Green Steel Tracker, transitioning to green steel could require up to 19% of the EU’s targeted renewable hydrogen production. Specifically, this transition could consume around 1.7 million tonnes per annum (MPTA) of renewable hydrogen by 2030, rising to 1.9 MPTA by 2045, representing substantial demands on hydrogen resources.

In addition to hydrogen, the renewable electricity demand associated with these projects is projected to reach 135 terawatt hours per year, comparable to the electricity consumption of a country like Sweden. Such figures underline the scale of the energy transformation needed in the sector. However, the report emphasizes that "a lack of transparency in company plans means the true figures could be even higher."

Balancing these demands comes with potential trade-offs. The recycling of scrap metal and the importation of hot briquetted iron could lower renewable energy requirements, but this strategy may reduce self-sufficiency and impact local employment, reflecting a complex scenario with economic and social consequences. As the report highlights, “the recycling of scrap combined with imports of hot briquetted iron would significantly reduce the demand for both renewable hydrogen and renewable electricity," though these measures come with associated compromises.

Europe’s proactive approach is evident, with many green steel projects scheduled to come online by 2030, demonstrating regional leadership in the steel industry’s green transition. Nevertheless, coordinated planning is crucial. As Per Andersson, Head of Secretariat at LeadIT, argues, “Evaluating and planning the renewable electricity demand for the iron and steel sector with all stakeholders is essential to minimize delays.”

For the transition from fossil fuel-based to renewable electricity-based production to succeed, accurate projections of energy demand are vital. Reliable estimates ensure the alignment of the steel sector's needs with the broader energy and industrial transitions. The analysis uses data from the Green Steel Tracker to assess the energy demands of announced projects and contrasts these with the EU’s Renewable Energy Directive and the REPowerEU plan. The report underscores that “significant differences in energy needs in the different scenarios studied” affect energy security and material availability, underscoring the need for transparent and coordinated energy planning.

Source: Lead.it Photo: Pixabay