German Chancellor considers future transition to green steel inevitable

German Chancellor Olaf Scholz, during a visit to the Thyssenkrupp Steel Europe plant in Duisburg, spoke in favor of the steel industry’s further transition to climate-neutral production, reports Manager Magazine.

Scholz, who is the leading SPD candidate in the February 23 elections, cited the wishes of the automotive industry as well as other major customers who expect zero-CO₂ products in the future. In order to protect steel production, companies should be able to work with gas first and hydrogen in the long term.

The German Chancellor believes that it would be against the interests of all steelmakers in the country to stop the process of supporting the transition that has been launched.

Dennis Grimm, Head of Thyssenkrupp’s steel division, said following Olaf Scholz’s visit that the company’s representatives had once again emphasized the urgent need for political action regardless of the outcome of the national elections. This is because steel production in Germany is an important basis for creating industrial value.

According to him, the steps that the industry needs are competitive energy prices (primarily lower grid fees), effective trade protection at the European level, protection against carbon leakage through an effective CBAM, and incentives for the use of environmentally friendly raw materials.

“Green steel is the business model of the future. But there are obstacles to overcome, including the slow rollout of European hydrogen infrastructure and the still almost non-existent supply of sufficient, affordable hydrogen. Here, too, politicians must take action to achieve ambitious goals,” Grimm said.

As a reminder, Germany continues to discuss green steel. In particular, in January, Friedrich Merz, a candidate from the conservative CDU party for the post of chancellor, clarified his statements on green steel and hydrogen. He explained that he is a supporter of renewable energy and hydrogen technology, and thus of the production of environmentally friendly steel. However, the politician noted that it is necessary to set realistic goals.

Earlier, Merz expressed doubts about the success of the rapid transition of steel mills to hydrogen fuel, and also pointed to the cost of green steel produced using hydrogen compared to the traditional route.