Steel Silence: Carmakers Snub CSU’s ‘Green Steel’ Demand

Steel Silence: Carmakers Snub CSU's 'Green Steel' Demand

Several steel companies have responded to the CSU’s demand for a “departure from green steel” in a reserved manner.

“We at Thyssenkrupp Steel are convinced that the future belongs to green steel in order to preserve value creation and jobs in Germany” said a Thyssenkrupp Steel spokesperson in an interview with the Funke Media Group (Tuesday editions). “Our customers from various industries, particularly the automotive industry, signal to us a growing demand for CO2-reduced steel.”

“For the first transformation step, it’s essential to ‘act now'” the spokesperson added. “We’re focusing on building a 100% hydrogen-capable direct reduction plant, which can already reduce CO2 emissions by up to 3.5 million tons per year in hydrogen operation.”

ArcelorMittal stated in a response that the company is committed to technology openness in the transformation of steel production to so-called “green steel” with net-zero CO2 emissions. “This includes carbon capture and utilization (CCS and CCU) as well as the conversion from the blast furnace and coal to the electric arc furnace with natural gas and, in the future, when available and economically viable, green hydrogen.”

The CSU’s state group had passed a resolution for its winter retreat at the Kloster Seeon, stating that it wanted to “end the detour of green steel production” and “instead focus on CO2 capture and storage”.

The steel industry is one of the most CO2-intensive industries in Germany. The transition to hydrogen-based production is being promoted by the federal government with billions of euros in funding.

The company remains open to further technological developments, with Thyssenkrupp Steel stating that “the technology and regulatory framework for CO2 capture is not yet at a maturity level that enables concrete planning.