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ENVIRONMENT

Developing a sensible biofuels strategy for Germany

Reinhard Schultz from the Social Democratic Party’s (SPD) parliamentary group remains optimistic Germany will continue to develop biofuels despite the government’s recent decision to shelve its E10 project.

Developing a sensible biofuels strategy for Germany
Photo: DPA

Many crocodile tears have been shed over the past week by those who would like to consider the government’s biofuel strategy a failure. But what actually happened?

A technical requirement for regular petrol to contain ten percent ethanol cannot be implemented as planned. The reason? The automobile industry isn’t able to stick to promises made to the government because it wasn’t informed about an agreement for older foreign cars in Germany. That’s regrettable. But is it a catastrophe? No. Ethanol has up till now played a minor role in Germany. The biofuel market runs on diesel. And a biodiesel mix is available in greater quantities than before.

Moreover, the technical aspects of such mixtures have nothing to do with the level of the biofuels quota, which can be fulfilled either through fuel additives or via the straight sale of biofuels. The choice is largely up to petroleum industry. Of course, the big oil companies don’t like to sell pure biofuels. They don’t have the infrastructure to do so. But they could – and legislation specifically allows this – make use of the services of independent midsized petrol stations. The oil firms only need to make up the price difference between “normal” gasoline and diesel. Until greater quantities of biofuels can be added to the mix this method is certainly reasonable demand to place on the petroleum industry.

Naturally, we are also keeping an eye on the global market for biofuels and the raw materials they require. We are aware of the limits to its growth if our biofuel strategy is to remain both sustainable and oriented on meeting climate change goals. But we also see a lot of room to expand the use of biofuels in both Germany and Europe. And that’s exactly what we aim to do.

Parts of the petroleum and automobile industries, and of course Germany’s car lobby ADAC, have publicly made a fool of both the Environment Minister Sigmar Gabriel and the government in the worst possible way – especially since they were the ones directly responsible for the information chaos. But it won’t be much use to them. Germany will continue to pursue a sensible biofuels strategy.

Reinhard Schultz is a member of the Bundestag for the SPD.

Translation by The Local.

ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

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The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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