Europe’s new steel action plan aims to cut energy costs and accelerate the introduction of low-carbon technologies like hydrogen to steelmaking as the bloc grapples with overseas competition.
The plan outlines measures to protect EU steelmakers from cheap imports by accelerating grid access and prioritising clean tech investments, as well as curbing imported volumes by up to 15%.
However, specific measures remain unclear.
It highlighted the need for a plentiful, affordable supply of renewable and low-carbon hydrogen to drive cleaner production. Without it, high costs and limited availability could stall adoption, the plan stated.
“To make sure they [steelmakers] remain competitive, we must reduce energy costs and help them introduce innovative, low-carbon technologies to the market,” explained Ursula von der Leyen, President of the European Commission.
Many of the measures overlap with the Clean Industrial Deal, including plans to adopt delegated acts on low-carbon hydrogen – expanding support beyond the heavy green hydrogen focus thus seen in the EU.
Laurent Donceel, Director for Transport, Industrial Policy & Sustainability at Hydrogen Europe, praised the EU’s new plan as “another string to the bow for Europe’s clean tech sector and for the decarbonisation of its key industries.”
“It’s equally positive to see the commitment to the buildup of European green lead markets, supporting key industrial sectors that are ready to utilise clean solutions.
“Labelling schemes, sustainability criteria, and dedicated funding mechanisms are necessary first steps to incentivise the offtake of green products,” Donceel added.
It also comes amid an unfolding trade war with the US after President Donald Trump reintroduced 25% tariffs on EU steel imports – forcing the bloc to respond with similar measures.
Unless resolved, it could leave European consumers paying a higher premium for US steel or face shortages while relying on domestic production.
SteelWatch: Import green DRI, not hydrogen and iron ore
Importing green hydrogen-based sponge iron from renewable-rich countries could reduce shipping volumes by nearly 75% compared to producing it locally with imported hydrogen and iron ore, according to new SteelWatch analysis.
The steel decarbonisation advocacy group said that local direct reduced iron (DRI) production in regions like northern Europe would take around four times more shipping capacity for hydrogen and iron ore than shipping the end product.
It said the inputs for a local 2.5 million tonne per annum (mtpa) direct reduced iron (DRI) plant total of 3.5 million cubic metres of hydrogen and iron ore would need to be imported.
In stark contrast, it estimates shipping 2.5 mtpa of green sponge iron from an overseas DRI plant, with locally available hydrogen and iron ore, involves moving just 0.75-1 million cubic metres of material.
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