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Germany: EUR 5 bn for hydrogen-based steel production

Arnes BiogradlijaBy Arnes Biogradlija07/05/20211 Min Read
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Germany will spend an additional EUR 5 billion to reduce pollution from the steel sector, according to Bloomberg, as it ramps up efforts to meet more strict climate goals.

Following a meeting with representatives from the German steel industry, Germany’s Economy Minister, Mr. Peter Altmaier, said, “Steel is a crucial industry for Germany.” Around the same time, as the largest industrial emitter of greenhouse gases, it plays a unique role in efforts to minimize pollution.

Germany will contribute to steel mill hydrogen processing schemes as well as other research initiatives. The funds will also be used to assist in the development of the infrastructure needed to support the transition to low-emission metal production.”

Steelmakers have made some strides in lowering carbon emissions by increasing plant productivity, but innovation has slowed. Cleaning the steel would necessitate a systemic improvement, such as heating the furnaces with hydrogen rather than gas. This will result in a significant rise in production costs.

The Federal Cabinet approved a “Steel Action Plan” to support the industry last July. However, no clear funding commitments for the billions of euros needed to convert the steel mills have yet been made.

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