The European Council has included the transformative industrial technologies for the decarbonization of energy-intensive sectors, such as steel, in the list of net-zero technologies in the general approach on the EU’s Net Zero Industry Act. The European Steel Association (EUROFER) has stated that the council’s recognition of net-zero steel technologies boosts expectations for green markets in Europe.
Noting that promoting carbon capture, usage and storage (CCUS) is an essential tool for sustaining the transition to low-carbon steelmaking, EUROFER stated that the European Parliament and the council should now seize the opportunity to reach an ambitious agreement to promote EU-made green products in public auctions of net zero technologies and to drive CCUS in Europe.
“The EU steel industry is currently working on over 60 industrial-scale decarbonization projects which are aiming at mass low-CO2 production as soon as 2025-26. All net-zero technologies, such as wind, solar and hydrogen electrolyers, depend on steel, with an estimated need for more than 74 million mt of steel for the expansion of EU renewables alone,” Axel Eggert, director general of EUROFER, said.
Meanwhile, EUROFER said that the conversion of existing steel plants to hydrogen and electricity-based technologies is the first crucial step to reach climate-neutrality. However, despite their recognition as net-zero technologies, the council has not included their deployment in the Net Zero Industry Act, meaning that low-carbon steel technologies will be excluded from the new rules facilitating permit-granting procedures. A potential reassessment five years after the Act’s entry into force will be too late for the first wave of the steel industry’s transition process and will likely result in significant implementation delays, EUROFER stated.
