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EUROPEAN UNION

Carmakers slam EU CO2 emission compromise

The German automobile federation VDA slammed on Tuesday an EU compromise on rules to cut CO2 emissions from new cars, saying it ignored the sector's current crisis.

“Globally, the project does not take enough account of the automobile industry’s difficult situation,” a VDA president Matthias Wissmann said. “Those who are following the evolution of global markets cannot act as though nothing has happened.”

Members of the European Parliament, with representatives of the EU countries and the European Commision, agreed in Brussels on Monday evening to a graduated reduction of CO2 emissions in new cars up to 2015. The EU Commission originally wanted to limit emissions to 120 grams per kilometre starting in 2012, tightening restrictions from the current 160 grams.

According to the compromise, only 65 percent of new cars will need to meet this requirement, now until 2012. The requirement will be extended to 100 percent of new cars in 2015, and in 2020 CO2 emissions should decrease to 95 grams per kilometre.

“The negotiated compromise corresponds nearly one-to-one with the position of the European auto industry,” said Viviane Raddatz of the World Wildlife Fund (WWF). German Chancellor Angela “Merkel is now losing her reputation as climate chancellor in decisive questions,” she added.

The German League for the Environment and Nature Conservation (BUND) made similar objections. “Germany’s credibility in the realm of climate protection” is “seriously damaged”, BUND leader Hubert Weiger said.

But Environment Minister Sigmar Gabriel defended the compromise. He told the Bayerischer Rundfunk (Bavarian Broadcasting) that it is not really dramatic for the world climate, whether the auto industry reaches the CO2 goal by 2012 or in steps by 2015. Gabriel said that it is important to give the sector a legally binding framework, as the former voluntary agreements have not been upheld by the European auto industry.

Economy Minister Michael Glos aligned himself with this position, saying that the agreement gives the auto industry planning security.

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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