The European Union's plans to transform the steel sector green could consume one fifth of the EU's renewable hydrogen reserves by 2030.
According to a new report by the Leadership Group for Industrial Transition (Leadit), new projects involving a third of the EU's steel production could increase annual hydrogen consumption from 1.7 million tonnes to 1.9 million tonnes in 2045. It is also emphasised that this conversion requires an additional 135 terawatt-hours of renewable electricity per year.
The report issues an important reminder that the actual energy needs of steel producers are likely to be higher than estimated due to a lack of transparency in their green transformation plans.
Analysts indicate however, that while strategies such as recycling and imports of hot briquetted iron have the potential to reduce the need for renewable energy, could reduce Europe's independence in steel production and lead to negative economic impacts on local businesses.
Energy prediction and cross-sectoral coordination are emphasised for the EU's green steel transition. Leadit report highlights the reliance on a transparent and joint planning process by the EU Commission, Member States and steel producers for a successful transition.
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