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ENERGY

Ministers meet in Sweden to spar over EU energy targets

The energy and environment ministers of the European Union are meeting this week in the Swedish resort town of Åre to work out details of how exactly the EU will meet its ambitious goals to reduce the 27-member bloc’s energy consumption, report the AFP’s Catherine Marciano and James Franey.

Ministers meet in Sweden to spar over EU energy targets

With the EU striving to meet its ambitious climate goals, the European Commission quizzed member nations Thursday on whether to make targets for cutting energy use legally binding.

EU Energy Commissioner Andris Piebalgs opened a debate with ministers at a meeting in Åre in northern Sweden on the bloc’s goal to cut consumption by 20 percent by 2020 becoming a mandatory target.

But many of the 27 countries are wary of imposing a new limit, conscious of the fact they already have a number of environmental commitments to honour.

The EU decided last December to cut its greenhouse gas emissions by 20 percent compared to 1990 levels by 2020 — the most ambitious target set thus far on the international stage.

To achieve that overarching goal, energy use would have to come down by 20 percent while 20 percent of all energy consumed by Europeans would come from renewable sources.

Only this last target is voluntary, meaning member states cannot be fined if they fail to reach it.

“That’s a bit strange,” said Swedish Energy Minister Maud Olofsson.

“From a Swedish point of view I think it’s good if we can have a mandatory target for energy savings,” Olofsson told AFP.

Yet she admitted: “It’s very difficult to find a way of measuring energy efficiency.”

The European parliament also backs making this goal obligatory in the EU.

“When there is a legally binding target, we succeed,” one European Commission official said.

If there is no extra pressure put on the member states, the EU could fail in meeting its greenhouse gas targets, the official said.

However, a senior diplomatic source told AFP that forcing countries to meet this target could backfire.

“It would be inefficient and it would destroy Europe’s climate objectives,” the source said.

Italy’s Economic Development Minister Claudio Scajola said he did not oppose the 20 percent target but called for some flexibility.

“It is important that the framework is flexible because there are different situations in each country,” he said, pointing to the differing levels of economic growth between all EU member states.

To make those crucial energy savings, buildings, transport and household appliances will need to be adapted to be “more efficient”.

Consumer behaviour will also need to change if that target is to be reached.

Since 2006, EU members have been preparing their own strategies to tackle the problem of energy efficiency.

But officials in Brussels believe they lack bite and they say further legislation to bring about the necessary change is needed.

One measure intended to do so was at the centre of discussions here on Thursday — a plan to introduce an EU-wide energy efficiency label for all buildings.

The aim is to encourage landlords to spend money on making their property more eco-friendly, something which is difficult to do when their tenants are the ones paying the electricity bills.

According to the European Commission, homes and offices are responsible for 40 percent of emissions of carbon dioxide, the main gas responsible for global warming, across the EU.

Under the commission’s proposals, all buildings put up for sale or on the rental market would have to supply information on the levels of insulation, CO2 emissions and advice on how to make further energy savings.

The EU has already introduced one such measure to encourage homeowners to cut back on energy bills: the sale of traditional light bulbs will be banned from September 1, 2012, steering consumers towards their energy-saving equivalents, which use five times less electricity.

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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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