EU may increase funding for research in coal and steel sectors – Argus

The European Commission may finance a much larger share of research in the coal and steel industries from 2027 onwards. This was reported by Argus Media, citing a published staff working document.

If the bloc goes ahead with this proposal, the EU’s Research Fund for Coal and Steel (RFCS) will finance 70% of corporate and 100% of academic research in the field of green initiatives (currently, 50% of both are supported). However, it is difficult for it to attract participants or achieve its spending targets due to certain aspects.

From 2021 to 2024, the RFCS spent 57% of its €43 million budget on large coal projects and only 31% of the €208 million earmarked for steel research. For example, in the steel sector, the RFCS has allocated funds to hydrogen energy initiatives such as ProSynteg and HYDREAMS.

Brussels, concerned about the lack of applications, consulted with companies and scientists this year. These consultations showed that the biggest obstacle was the cost requirements. Most potential participants were unable or unwilling to finance half of the cost of large research projects themselves.

In April, the EC approved €400 million in state aid to Spain for the development of renewable hydrogen production. The funds are allocated under the European Hydrogen Bank’s Auctions-as-a-Service mechanism, which aims to support the green transition and reduce dependence on fossil fuels.