Green steel—a material with national significance

Contents of the article:

Page 1: Green steel — a material with national significance
Page 2: Hydrogen is likely to be more expensive than expected
Page 3: However, sustainable steel must be competitive

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However, sustainable steel must be competitive

A direct reduction plant and three electric arc furnaces are thus set to replace two blast furnaces at ArcelorMittal in Bremen and Eisenhüttenstadt in the coming years. The Federal Ministry for Economic Affairs and Climate Action has pledged 1.3 billion euros (14.097.200.000 USD) to support the construction. The company aims to make a final investment decision by mid-2025. "Competitive energy prices are a key issue. The infrastructure for green hydrogen is also lacking," Langner notes. Therefore, CO₂-reduced steel has not yet sufficiently established itself in the market. Ultimately, the price per ton of steel is crucial. And this strongly depends on the price of electricity. Therefore, scrap is used wherever possible. Old steel can be recycled for construction steel, for example. According to Langner, the construction sector could become a leading market for CO₂-reduced products if this steel were to be mandated for use in public buildings, for example.

Hydrogen steel will catapult electricity demand

More electricity needs to be drawn from the grid. When asked about hydrogen sources, Langner says: "The energy demand for steel production will be enormous. Therefore, it will certainly be necessary to rely on energy sources worldwide for the production of green hydrogen." The demand for electricity will also be gigantic. According to Langner, implementation will therefore take a long time. Although electricity prices have already significantly decreased again (80 to 120 euros per MWh = megawatt-hours; approx. 86 to 130 USD per MWh), they are still twice as high as before the crisis years. The products of the "green", transformed industry should not only be environmentally friendly but also competitive. However, to ensure competitive energy prices, a European energy market is needed that promotes cross-border infrastructures for renewable and low-CO₂ energy sources.

Gallery

Steel production in Germany is to be decarbonized. However, existing overcapacities of steel products must first be reduced.(Image: Th. Isenburg)

Pellets made from iron oxide are the basis for steel production. In the future, their oxygen should be removed not with coke but ideally with green hydrogen, which is obtained using renewable energy, to obtain iron.(Image: Th. Isenburg)

The production of steel is a very energy-intensive process. Therefore, considerable efforts must be made in the expansion of renewable energies (see wind turbine in the background) to make the steel production of the future green.(Image: Th. Isenburg)

In Duisburg, a direct reduction plant is being built at Thyssenkrupp Steel Europe. It is intended to use green hydrogen to produce sustainable steel.(Image: Thyssenkrupp Steel Europe)

A climate-neutral economy takes a lot of time

For competitiveness, the price would need to be between 50 and 60 MWh. In any case, it is clear that the transformation to a climate-neutral economy is a complex and long-term process. The framework conditions must therefore be continuously reviewed and adjusted to ensure that the transformation proceeds successfully and the German steel industry remains competitive. It is also essential to maintain key value chains in the country and ensure economic stability.

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Date: 08.12.2025

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