Ref. Ares(2023)4176198 - 16/06/2023
x
stated that it is impossible to provide a business plan, as
the future hydrogen prices/power costs are unknown. Since the IRA,
he saw many projects being real ocated to the US. The US have a
hot briquetted iron (HBI)
[porous sponge iron, pressed into
briquettes. HBI is created by reducing the iron ore with natural gas.] production of EUR 160 per tonne.
x He explained that the US still has a cost advantage even under
CBAM, whereas he would need a lot of energy for electrifying. He
said his production had halved and that it is impossible to be part of
the global world. Especially, the IRA made his business cases not
bankable. Next year, he would need to decide on a second
installation, but this would mean a 5 million investment with a difficult
bankable case.
On green steel and using scrap
x EVP Timmermans said that there has been interest in green steel
that was not anticipated. India, China, the US are all interested.
Interlocutors from these countries say that they do not worry about
CBAM as their products will be green and that they will be faster with
this transition. He was wondering how this dynamic is influencing
the steel industry.
x
said that his company had been certified as a net-
zero emissions company and that as such they decreased their
carbon footprint. He mentioned that 100 percent of their electricity
was made from renewables. However, the running costs had
significantly been increased. They therefore closed the blast and
started producing from scrap. In Europe 100 million tonnes of scrap
are available but 20 million tonnes leave to Turkey. There is scarcity.
x Subsequently, his company lost market share to India. However, the
steel produced in India is carbon-based. He did not yet see a
commitment from India to do better in that respect. He added that,
although the EU steel industry is able to decarbonise, the market is
not yet ready to pay for it. Trade defence instruments are not always
effective, the CBAM can be circumvented and will only truly kick-in
after 2030. Therefore, there is a risk the European steel industry will
disappear. He said to be counting on the Commission for strong
negotiations on global steel, to defend our markets and for
decarbonisation. Scrap export would need to be limited. It is a critical
raw material and needed in the EU for our own steel production.
x
added that there are 44 countries that limit
exports of scrap to Europe but at the same time, the EU has its
doors open. That would need to stop.
x
said that every country is claiming to control the
overcapacity: such as China. However, the Chinese now produce in
Indonesia at low costs but polluting heavily with a high CO2
emission. They destroy the environment without respect for
compliance. He added that to stop scrap exports, the Waste
Shipments regulation needs to be implemented.
x
added that the European Parliament has already adopted
some good elements such as better monitoring of exports. However,
he advocated to ensure that countries that import need to meet the
same conditions as applied in the EU, to avoid environmental
damage. He therefore did not advocate for a ban on scrap exports
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