Steel industry says decarbonisation will be ‘difficult’ without cheap energy

Unesid said that the Spanish steel industry was “firmly committed to decarbonisation” but that “the lack of proven technological developments on an industrial scale and the large variability in energy prices” make it difficult for them to undertake the necessary investments. In its congratulatory message to the new Minister of Industry, the Spanish steel employers’ association said: Jordi Hereuwith his appointment.

The Association of Steel Companies (Unesid), of which ArcelorMittal is a member, underlined “the need to have electricity for electro-intensive consumers, and in particular the steel industry, at a price that will allow them to compete on equal terms with the main Europeans (Germany and France)” and the employers’ association stated in the statements of the Secretary General, Andrés Barcelo“Without this requirement, it will be very difficult for companies to undertake the significant investments required for decarbonization.” And he added: “We need a sound energy policy based on technological neutrality, thus providing security to industry, especially electro-intensive industry.”

The industry body argued that “there is no point in decarbonising our plants if over time we will not have alternative energy vectors (referring to green hydrogen) “in sufficient quantities and at prices that are not suitable for the production of Spanish manufacturers. Steel is so expensive that no one is buying it.”

Unesid’s announcement came on the day ministers of the new Spanish government took office and amid growing concerns over ArcelorMittal’s delay in approving the construction of a direct reduction furnace (DRI) powered by green hydrogen. Undertaking the decarbonization of the Asturian steel center with the aim of replacing one of the two blast furnaces at Veriña and preserving the status of an integrated factory in the future. Currently, ArcelorMittal is committing to the construction of the future hybrid electric furnace that will replace the Gijón steel mill, but has not yet completed the DRI (the most expensive action of the total investment estimated at 1,000 million) on April 4, although the Government made the European Commission earlier for this installation Approved $450 million in aid authorized by.

The government said in September that the energy price was determined by the market and the market could not intervene.

Ünesid plans to meet with Hereu to express the needs of the sector. The employers’ association reiterates, inter alia, that in PERTE decarbonisation priority is given to large thrust projects (Unesid represents large industry) and looser deadlines are granted, currently limited to March 2026: “There is no point in demanding that we decarbonise steel employers “If there is not enough technology or energy, tomorrow. And tomorrow in March 2026,” the association said.

collective bargaining agreement

On the other hand, a new negotiation meeting for the ArcelorMittal collective agreement was held in Asturias yesterday and no significant progress was made, calling for three meetings next week to reach an agreement.

The industrial sector slowed its decline in Asturias by double digits to 5.3% after five months

In Asturias, the Asturian industry’s turnover fell by 5.3% year-on-year in September; This shows that the decline has eased significantly after being chained by double-digit declines for five consecutive months. The decline in the Principality was four-tenths less than average, with only five districts closing positive. Asturias was the fourth country with the least decrease. On average so far this year, Asturias has lost 9%, ahead of Murcia (-11.3%). The Spanish average fell 1% in nine months. Turnover depends on sales volume and industrial prices, which have been easing for months.

While Madrid leads annual industrial growth, it is the community where jobs in the service sector, the main productive specialisation, have fallen the most (-6%). Asturias, on the other hand, became the third region with the highest annual growth in service turnover, with an increase of 5.5% in September, although it was lower than July and August due to the tourism effect.

Source: Informacion

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