The production of steel is a highly energy-intensive process, whether it is through the 'primary' production route using a blast furnace and basic oxygen furnace, or via the 'secondary' route in electric arc furnaces.
The primary route, which generally produces new steel from virgin raw materials, presently relies primarily on coking coal, which is both the reductant and a major source of energy to melt the iron ore.
The secondary route, which is generally used to produce steel from scrap, uses electricity to melt the metal.
As such, both routes require significant amounts of energy of one form or another. However, European producers have been refining their processes and, since the 1960s, have cut energy demand by 50%, alongside a similar reduction in greenhouse gas emissions.
The European steel industry's transition to a low or carbon-neutral future will have a large impact on energy supply, because new technologies will require even larger quantities to power new, carbon-lean processes.
This energy transition being as expected, EU energy policy is even more important than before - to ensure that the European steel industry has access to sustainable, affordable energy.
Brussels, 15 July 2024 – The proposal for a European Pact for Steel, presented by the German delegation to the European People’s Party (EPP), is a timely initiative in view of the start of the new EU legislative period. The European Steel Association strongly backs the creation of an EU high-level group, led by a renowned political personality, to ensure the success of the transition of the EU steel sector with rapid interventions, and urges Commission President Ursula von der Leyen to endorse it.
EUROFER policy recommendations to national governments
Uses, limits, and realistic potentials of demand-side response from the European steel industry along with a broad set of framework recommendations for an EU policy