Saar-SPD calls for a nationwide steel summit for a green future!

Saar-SPD calls for a nationwide steel summit for a green future!

A lot is currently happening within the steel industry in Germany. A central theme is the switch to green steel, which has met with great expectations in recent years. The Saar SPD has now launched an initiative at its party conference to call for a nationwide steel summit. Together with the North Rhine-Westphalia SPD, they plan to hold comprehensive discussions about the future of steel production in Germany. The focus? A clear roadmap for the transformation to produce green steel.

Secretary General Esra Limbacher emphasizes the urgency of these transformation processes for the competitiveness of the steel industry. In order to remain competitive, the Saar SPD is calling on the federal government to use more economical and faster processes for hydrogen production, a crucial element for the production of green steel. But the situation is tense because ArcelorMittal, one of the big players in the industry, has stalled its ambitious plans to produce green steel despite significant government funding. This decision is seen as a signal to politicians and industry that there is an urgent need for action.

The challenges of transitioning to green steel

As green steel talks continue, it is also becoming clear that the lack of a solid hydrogen infrastructure is complicating many companies' plans. A lack of pipelines and electrolyzers stands in the way of rapid construction of a hydrogen infrastructure. Thyssenkrupp and Salzgitter, which continue to advance their projects, are faced with high operating costs. It is estimated that “green steel” will cost around 300 to 400 million euros more annually than conventionally produced steel.

According to experts, a comprehensive hydrogen network will not be available until 2029 at the earliest, which will further increase Germany's dependence on hydrogen imports by then. “A change of course is necessary,” says North Rhine-Westphalian Economics Minister Mona Neubaur, who sees the switch to green steel as an opportunity for sustainable growth and climate protection.

Economic and ecological dimensions

Given the fact that around 30% of German industry's greenhouse gases come from steel production, the transformation to green steel production is not only an economic but also an ecological challenge. According to the Federal Environment Agency, the steel industry was responsible for almost 5% of total greenhouse gas emissions in Germany in 2022.

Experts from business and science have specialized in transforming the steel industry through the use of green hydrogen. Projects like H2Stahl are exploring the ways in which hydrogen can replace coal and natural gas to realize the transition to more sustainable steel production. The focus here is on the traditional blast furnace process, which is responsible for most of the CO₂ emissions in steel production.

The two challenges – economic feasibility and technical implementation – must be reconciled in order to actually achieve the transition to green steel production. A market for green steel and binding purchase guarantees are essential to create the necessary framework conditions and reduce the barriers that the industry faces.

The situation in the steel industry remains precarious, but the initiatives show that there are efforts not to give up on the dream of green steel. The path there is indeed paved with challenges, but with a clear strategy and cooperation from all those involved, it could be possible to put the German steel industry on the fast track when it comes to climate protection.