European Steel Association EUROFER, following the Commission Communication on the Green Deal Industrial Plan, has highlighted that as the foundations of the Net-zero Age are made of steel, from wind turbines to electric vehicles, the new EU Industrial Plan must have an overall vision, while its implementation will be crucial to adopt a value chain approach focusing on all key upstream and downstream sectors that are indispensable for reaching the EU’s climate and circular economy objectives. EUROFER said “The Green Deal Industrial Plan must provide a business case for investment in Europe comparable to the U.S. one. Otherwise, green steel projects as well as other clean tech investments risk not happening in Europe. Competitiveness will be key to attract clean investment in the EU as the Inflation Reduction Act will do in the US.”EUROFER Director General Mr Axel Eggert said “The IRA shows that it is possible to have a proactive, structural, carbon-neutral industrial policy centered on incentives and industrial competitiveness, rather than relying primarily on obligations and targets complemented only by piecemeal, uncertain. We estimate that the IRA, combined with additional resources from the US Department of Energy, can provide at least USD 85 billion of funding available for green steel production and upstream decarbonized energy.’Mr Eggert stressed “We call on the Commission to work out, jointly with industry, a concrete plan that secures access to timely, abundant and affordable fossil-free energy and hydrogen for steel and other sectors which are ready to speed up decarbonization, as well as access to Carbon Capture, Utilization and Storage, together with more certainty for and swifter access to funding and permitting of projects. A structured, comprehensive and long-term EU proposal on industrial policy should aim at matching the level of incentives provided by our international competitors. Implementation will be key.”He concluded “This is why we should consider a re-assessment of the EU policies, based on the principles of competitiveness and level-playing field, with an open and target-focused discussion between policymakers and the industry. They can be mainstreamed and actively promoted in all relevant policy areas for industry, as the US has already done with the IRA.”According to EUROFER’s projections, the US measures will result in a significant reduction of the cost of green hydrogen by about USD 3 and up to USD 4 per kilogram of hydrogen. This means that the IRA subsidies risk widening the current gap in steel cost production between the EU and the US up to 60%.
European Steel Association EUROFER, following the Commission Communication on the Green Deal Industrial Plan, has highlighted that as the foundations of the Net-zero Age are made of steel, from wind turbines to electric vehicles, the new EU Industrial Plan must have an overall vision, while its implementation will be crucial to adopt a value chain approach focusing on all key upstream and downstream sectors that are indispensable for reaching the EU’s climate and circular economy objectives. EUROFER said “The Green Deal Industrial Plan must provide a business case for investment in Europe comparable to the U.S. one. Otherwise, green steel projects as well as other clean tech investments risk not happening in Europe. Competitiveness will be key to attract clean investment in the EU as the Inflation Reduction Act will do in the US.”EUROFER Director General Mr Axel Eggert said “The IRA shows that it is possible to have a proactive, structural, carbon-neutral industrial policy centered on incentives and industrial competitiveness, rather than relying primarily on obligations and targets complemented only by piecemeal, uncertain. We estimate that the IRA, combined with additional resources from the US Department of Energy, can provide at least USD 85 billion of funding available for green steel production and upstream decarbonized energy.’Mr Eggert stressed “We call on the Commission to work out, jointly with industry, a concrete plan that secures access to timely, abundant and affordable fossil-free energy and hydrogen for steel and other sectors which are ready to speed up decarbonization, as well as access to Carbon Capture, Utilization and Storage, together with more certainty for and swifter access to funding and permitting of projects. A structured, comprehensive and long-term EU proposal on industrial policy should aim at matching the level of incentives provided by our international competitors. Implementation will be key.”He concluded “This is why we should consider a re-assessment of the EU policies, based on the principles of competitiveness and level-playing field, with an open and target-focused discussion between policymakers and the industry. They can be mainstreamed and actively promoted in all relevant policy areas for industry, as the US has already done with the IRA.”According to EUROFER’s projections, the US measures will result in a significant reduction of the cost of green hydrogen by about USD 3 and up to USD 4 per kilogram of hydrogen. This means that the IRA subsidies risk widening the current gap in steel cost production between the EU and the US up to 60%.
