German steel association WV Stahl says that due to the high energy costs, steel companies have to shoulder additional burdens of around EUR 8 billion projected over the year. WV Stahl Managing Director Dr Martin Theuringer said “Despite the current situation, the companies remain on a transformation course, but fast and effective help is needed. The relief for industry within the framework of the electricity and gas price brake (13 and 7 cents per kWh respectively) would help to overcome the current crisis. In the long run, however, energy costs would have to fall, otherwise companies would not be able to compete with the USA and Asian countries.He added “In the USA, the green transformation is currently being promoted by the Inflation Reduction Act. Germany, too, must align its industrial policy with maintaining value creation. In addition, the EU Commission should not create any additional hurdles in the case-by-case assessments of the granting of aid. Companies would have to make investment decisions in the coming months in order to achieve the 2030 targets. To this end, the necessary regulatory framework conditions must now be created.”WV Stahl in a separate note highlighted that recession and energy crisis threaten decarbonization of steel industry. It said “The recession poses additional major challenges for the steel industry in Germany, which has to cope with the transformation to climate-neutral manufacturing processes. So far, there is no certainty as to when sufficient quantities of green hydrogen will be available in Europe to ensure the energy supply of the steel industry. In addition, it is unclear whether and how quickly European companies could replace Russian gas with green energy and hydrogen at low cost. This jeopardizes the timelines and implementation of the industry's decarbonization strategies.”
German steel association WV Stahl says that due to the high energy costs, steel companies have to shoulder additional burdens of around EUR 8 billion projected over the year. WV Stahl Managing Director Dr Martin Theuringer said “Despite the current situation, the companies remain on a transformation course, but fast and effective help is needed. The relief for industry within the framework of the electricity and gas price brake (13 and 7 cents per kWh respectively) would help to overcome the current crisis. In the long run, however, energy costs would have to fall, otherwise companies would not be able to compete with the USA and Asian countries.He added “In the USA, the green transformation is currently being promoted by the Inflation Reduction Act. Germany, too, must align its industrial policy with maintaining value creation. In addition, the EU Commission should not create any additional hurdles in the case-by-case assessments of the granting of aid. Companies would have to make investment decisions in the coming months in order to achieve the 2030 targets. To this end, the necessary regulatory framework conditions must now be created.”WV Stahl in a separate note highlighted that recession and energy crisis threaten decarbonization of steel industry. It said “The recession poses additional major challenges for the steel industry in Germany, which has to cope with the transformation to climate-neutral manufacturing processes. So far, there is no certainty as to when sufficient quantities of green hydrogen will be available in Europe to ensure the energy supply of the steel industry. In addition, it is unclear whether and how quickly European companies could replace Russian gas with green energy and hydrogen at low cost. This jeopardizes the timelines and implementation of the industry's decarbonization strategies.”
