Stockholm Environment Institute has published a report based on an analysis of announced green steel projects in the EU, which would account for one third of current EU steel production. The steel industry is responsible for around five percent of carbon emissions in the EU and the industry needs to cut carbon emissions by 55 percent by 2030 to align with climate targets.
The report shows that green steel could need 19 percent of the total EU policy target for domestic renewable hydrogen production, which is equal to an annual 1.7 million mt by 2030, increasing to 1.9 million mt by 2045. Renewable electricity demand for green steel projects is likely to reach up to an annual 135 TW hours. The recycling of scrap combined with imports of hot briquetted iron would significantly reduce the demand for both renewable hydrogen and renewable electricity, but would also involve trade-offs, such as reduced self-sufficiency and impact on jobs.
As there are significant differences in energy needs in the different scenarios studied in the report, transparent planning by the EU, its member states, and steel producers is important to ensure electricity demand across sectors is balanced and decarbonization is achieved, the report states. Most of the green steel projects in the EU are planned to be commissioned by 2030. Evaluating and planning the renewable electricity demand for the iron and steel sector with all stakeholders is essential to minimize delays, the report said in conclusion.