Ref. Ares(2019)2782374 - 24/04/2019
From:
(GROW)
Sent:
vendredi 18 janvier 2019 17:20
To:
PELTOMAKI Antti Ilmari (GROW); TOKARSKI Slawomir (GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW-EXT);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW);
(GROW-
EXT);
(GROW);
(GROW);
-DE
(GROW);
(GROW);
(GROW)
Subject:
Notes - meeting with EUROFER
Please find below notes from a meeting with EUROFER.
and
(GROW F1) met EUROFER, the European Steel Association, on 15th January
concerning the Strategic Forum and IPCEIs. EUROFER was represented by Axel Eggert (Director-General)
and
EUROFER explained about the current steel manufacturing landscape: EU imports 30m tons of steel
annually and the demand for steel is increasing. Companies understand the need for decarbonisation,
but low-carbon manufacturing of steel in Europe depends on its competitiveness on the markets,
including ETS impact. Carbon capture (and storage/use - CCx) is a wel -known option in low-carbon
manufacturing. Hydrogen has become a realistic option to decarbonise steel manufacturing only
recently, and EUROFER is confident that it has big potential to decarbonise the sector.
EUROFER explained that recycled scrap metal makes up only 10% of the raw materials in steel
manufacturing in EU. Large amounts of scrap metal is exported outside EU because its utilisation in EU is
not economical. Using scrap metal reduces emissions with 75% compared to manufacturing of virgin
steel, and therefore scrap metal exportation increases emissions in Europe. Technically the sector could
use 25% scrap metal.
In addition to the ETS, EUROFER sees the IPCEIs as an important bridge between innovation and
industrial deployment. Large-scale demonstrators require huge capital expenditures and IPCEIs could be
used to launch the first hydrogen utilising or CCx pilot plants,. However, other framework conditions
need to be addressed (e.g. competitive energy supply) to ensure markets for low-carbon manufacturing
after the pilot phase. These potential IPCEI projects should ideally cover both infrastructure (for
hydrogen and CO2) and associated applications (like steel, chemicals and concrete manufacturing).
EUROFER advocates a technology-neutral approach with some MS preferring hydrogen and others CCx.
EUROFER shared its consideration about synergies and complementarities between the low-carbon steel
value chain with the low-carbon industrial processes and CCx or with the hydrogen value chains in the
Strategic Forum, reflecting on the benefits and drawbacks of such broadening of the scope, trying to find
a balance between best momentum and maintaining focus on the various specific issues for low-carbon
steel.
In addition to cooperation between Member States, EUROFER underlined both the broader regional
economic benefits of large-scale industrial hydrogen users and the potential of regional cooperation,
and gave an example of North-Rhine Westphalia organising a seminar on 25 February in cooperation
with other German steel regions and West Flanders. In this context,
drew their attention to the
Smart Specialisation Platform on Industrial Modernisation and the potential of such inter-regional
cooperation projects to complement the cooperation between Member States on strategic value chains.
explained the possibilities to broaden the scope of the strategic value chains in the Strategic
Forum. We explained also the next steps in the Strategic forum, laying out the impact of a potential
broader scope on action plans and explaining the first steps of launching IPCEI projects.
Discussions also touched briefly upon the HIsarna case where EU-funded research results wil be
continued in a large-scale low-carbon steel demonstrator in India.
Electronically signed on 24/04/2019 17:44 (UTC+02) in accordance with article 4.2 (Validity of electronic documents) of Commission Decision 2004/563
