Politicians and trade unionists spoke out in favor of preserving and converting the steel industry in Germany into a climate-neutral one at a “National Steel Summit” in Duisburg. “Green steel made in Germany is what drives us,” said Federal Minister of Economics Robert Habeck (Greens). Germany and the EU are global pioneers in the decarbonization of the steel industry.
“In Germany, we will convert around a third of Germany’s crude steel capacity by 2030 and thus produce around twelve million tonnes of CO2-free steel,” he said. German steel production is at the beginning of many important value chains. This makes it an important driver for key industries such as automotive or mechanical engineering and their transformation.
Steel industry emits large amounts of CO2
The steel industry is currently responsible for around seven percent of total greenhouse gas emissions in Germany. New steel production processes using climate-neutral hydrogen are intended to help. The construction of the large-scale plants required for this is being subsidized by the state with several billion euros.
The German steel industry is not having an easy time at the moment. The reasons are the weak economy, high energy prices and cheap imports, especially from Asia. Steel manufacturers, IG Metall and numerous federal states are demanding more support from the federal government in securing domestic companies. In a “National Steel Action Plan” they are asking the federal government, among other things, to take measures to ensure competitive energy prices.
More than 25,000 employees in NRW steel industry
The “Steel Summit” was organized by the North Rhine-Westphalian Ministry of Economic Affairs. Of the more than 80,000 employees in the industry, more than 25,000 work in North Rhine-Westphalia, according to the ministry. With six blast furnaces alone, Duisburg is Europe’s largest steel location. “Together we are sending a strong message: steel has a future,” said NRW Economics Minister Mona Neubaur.
A competitive domestic steel industry is essential for industrial value creation networks, prosperity, employment and a green transformation in Germany and Europe, the action plan states. “Steel is a material of great importance for German and European industry.” It is now crucial to make rapid and visible progress in implementing the measures, say the authors. They are therefore calling for an immediate program from the federal government.
Federal states call for “green lead markets”
In the action plan, the eleven federal states known as the “Steel Alliance” advocate, among other things, the creation of so-called green lead markets. In these, the demand for CO2-reduced steel is to be promoted with the help of public contracts.
The steel industry is under considerable pressure, said the President of the Steel Industry Association, Gunnar Groebler. “To prevent the boiler from exploding, the three biggest screws must now be tightened: establishing green lead markets, keeping energy prices in check and creating effective protection against unfair competition.”
IG Metall: Steel industry central to value creation
“Tens of thousands of well-paid, collectively-protected jobs depend on the steel industry,” stressed the second chairman of IG Metall, Jürgen Kerner. As a basic materials industry, the steel industry is also central to the value creation network that makes Germany successful as an industrial location. “This must be preserved and transformed into a CO2-neutral future.” Companies are expected to make a clear commitment to Germany as an industrial location and to invest in the future of domestic locations.
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