What is the EU's new mandate for automakers regarding steel?

The EU has mandated that automakers must compensate for a 10% emission reduction through low-carbon steel and alternative fuels from 2035.

Why is "green steel" facing production delays?

Green steel projects are delayed due to the high cost and limited availability of green hydrogen, which is necessary for its production.

How are automakers and steelmakers adapting to green steel challenges?

Automakers are shifting to scrap-based steel, while steelmakers are pivoting to scrap-based output, renegotiating subsidies, or adopting a step-by-step approach using electric arc furnaces.

Home / Business and Economy / Europe's Green Steel Dream Faces Reality Check

Europe's Green Steel Dream Faces Reality Check

4 Mar

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Summary

EU mandates automakers use low-carbon steel from 2035.
Green steel costs a third more, facing production delays.
Automakers shift to scrap-based steel amid green challenges.

Europe's Green Steel Dream Faces Reality Check

Automakers in Europe are confronting a significant challenge under new European Union plans requiring the use of low-carbon steel. While the EU aims to bolster its steel industry and meet environmental targets, the availability and cost of "green steel," produced with nascent technologies like green hydrogen, remain major hurdles.

Projects for green steel production have faced numerous delays and cancellations due to the high cost and limited scale of green hydrogen. This situation is forcing steelmakers to reconsider their strategies, with some, like ArcelorMittal and Salzgitter, focusing more on scrap-based output. Thyssenkrupp is reportedly renegotiating subsidy terms with Brussels.