Green steel to become cheaper than coal-based steel by early 2030s – German CEO
FAZ
Climate-friendly steel made with green hydrogen is set to become cheaper than conventional steel produced using coal in five to eight years, Gunnar Groebler, CEO of steelmaker Salzgitter, told Frankfurter Allgemeine Zeitung.
“We expect green steel to be cheaper than grey steel produced using coal between 2030 and 2033,” Groebler said. However, he cautioned that this depends on the availability of green hydrogen and the costs of renewables-based electricity needed to produce it. The CEO added that Salzgitter plans to start offering green steel from 2027 onwards, and expects to use about 150,000 tonnes of green hydrogen annually as “one of Germany’s biggest hydrogen consumers.”
Groebler called on German and EU regulators to continue supporting the transition to climate-friendly steel production, and creating the right framework for a ramp-up of the market. “The steel industry is in the midst of a transition to climate neutrality, but Brussels and Berlin must do more to support this,” he said. Steelmakers were far too advanced to pull the plug on the transition now, he said, adding this would mean “billions in wasted costs for the industry and taxpayers.”
Germany’s steel industry is under pressure due to trade conflicts, overcapacity and international competition, and has highlighted the challenges arising from high energy prices and subsidised imports. Chancellor Friedrich Merz of the conservative Christian Democrats (CDU), who leads a coalition government with the Social Democrats (SPD), plans a “steel summit” with company and union representatives to discuss the sector’s problems, though no date has been announced. The SPD, meanwhile, has proposed the state should take stakes in struggling steel companies as a last-resort measure to rescue the crisis-ridden industry and enable climate-neutral production.
Salzgitter announced in September that it would delay later stages of green steel projects due to economic and regulatory challenges.
