Clean energy will increase costs for US metallurgists

The US Environmental Protection Agency (EPA) is proposing a new "Clean Power Plan" (CPP) for the electricity sector, in which the American Iron and Steel Institute (AISI) said the new plan could raise electricity costs for steelmakers in This, in turn, will hit the competitiveness of the country's steel industry and cause job losses in the industry.

According to Thomas J. Gibson, president and chief executive officer of AISI, the proposed CPP plan could put US steel producers at a disadvantage relative to competitors in other countries that have higher greenhouse gas (GHG) emissions and some benefit from incentives. on electricity costs. Such a result will negatively affect not only the domestic metallurgical industry and its employees, but also harm the environment at the global level.

AISI notes that steel production is inherently energy intensive and the industry consumes significant amounts of electricity. In its official comments, the EPA indicates that the CPP plan could cause a 6 to 7 percent increase in the nationwide electricity price. The economic impact of this electricity “charge” will be negative for the steel industry, according to AISI.

The American steel industry is facing significant challenges against international competitors. The volume of illegally traded imports in the country has grown significantly in recent years, according to AISI. The additional pressure from electricity costs will threaten the survival of the already highly competitive American steel industry, Gibson said.