Eurofer urged to change plans to introduce hydrogen market in EU

The European Steel Association Eurofer on July 15 called on the European Commission to develop a practical framework and timetable for a phased transition to the hydrogen market in the European Union, including extending the proposed transition period for its introduction until at least 2030.

Proposed limits on industrial CO2 use also need to be reviewed and the definition of possible CO2 sources expanded, Eurofer said in a joint statement along with other European industry associations.

According to the statement, the extension of the introductory phase for the hydrogen market will not only allow more time for the construction of the electrolyzer, but will also take into account the construction time of new renewable energy plants, with the construction of offshore wind farms taking up to seven years.

“Our industries are critically dependent on the widespread availability of non-biological renewable fuels, or RFNBOs, delivered at competitive prices and reliably across Europe,” said Eurofer.

The longer time frame will also allow steelmakers to continue production during the lead-in period to meet global steel demand without seeing their investment in production capacity dwindle due to restrictions on carbon capture, use and storage technology, Eurofer said. Integrated steelmakers are concerned about the narrow time window offered for CCU and CCUS technologies under EU proposals, the report said.

CCS is currently seen by some quarters as the only technology available to decarburize blast furnace steel in the short to medium term. Various sources believe that steel production in blast furnaces has been going on for decades due to the huge capital investment they represent.

“The proposed end date (2035) for industrial CO2 sources will immediately stop investment in CCU today. CO2 emissions from fossil sources must be phased out by several regulations, including the Renewable Energy and Energy Efficiency Directives. and the EU Emissions Trading Scheme, leaving only process-related and therefore unavoidable emissions that are difficult or not to reduce,” the joint statement said.

“CCU is an effective solution for capturing these remaining emissions and converting them into valuable transportation fuels by harnessing CO2 emissions that would otherwise be released into the atmosphere,” said the statement, also signed by the mining, chemical, cement, ceramics associations. , fuel and mineral industries. “Storage options for captured carbon may not be available or even allowed in certain locations. This unjustified time limit will have significant implications for profitability, as a service life of no more than 13 years is insufficient to recover the investment cost of a CCU and will therefore discourage investment. that enable meaningful recycling and reuse of CO2 emissions.”