Project

A green fix for steel

European Investment Bank

DOI: 10.26303/8t6r-2n30

What is it about?

The steel industry is responsible for about 7% of global carbon emissions. So the European Investment Bank, Europe’s top climate investor, can only back steel investment that is sustainable and innovative. One deal that did qualify for support in 2024 is a €300 million loan approved in June to help the large Austrian steel company Voestalpine conduct research into innovative steel products and sustainable manufacturing. Voestalpine, one of the largest steelmakers in Europe, will use the money over four years to research and develop processes that use less energy, consume fewer raw materials and extend the life of steel products.

Why is it important?

More research can help the environment, but it also is the main way Voestalpine can compete globally in the steel market. Voestalpine’s latest sustainable steel project is called greentec. It will cut emissions by up to 30% starting in 2027, compared with 2019 levels, by partially replacing carbon-intensive blast furnaces with electric arc furnaces. The European Investment Bank also signed a €314 million deal at the start of 2024 for a new H2 Green Steel plant in Boden, Sweden, that will make steel from iron ore with hydrogen and, consequently, will emit 95% less carbon.

Perspectives

Increased costs for energy and labour, along with the massive increase in price pressure from non-European competitors, for example from China, makes it a big challenge to stay competitive internationally. Fortunately, our innovative steel products are highly sought after in the most demanding sectors.

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Who is involved?