The German steel federation Wirtschaftsvereinigung Stahl (WV Stahl) has stated that the German steel industry’s additional electricity needs for hydrogen electrolysis, which is important for decarbonization, will total 48 TWh in 2030. However, with the removal of the subsidy for transmission network fees within the electricity price package introduced in November last year, German companies, especially those that produce steel with comparatively low emissions in electric arc furnaces, have been paying more for electricity than ever before since the beginning of the year.
As the industry needs electricity, preferably renewable electricity, for low-carbon steelmaking, hydrogen-based direct reduction will need four to five times as much electricity from the grid in the future. WV Stahl stated that a solution for competitive electricity prices therefore remains urgently necessary.
