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ENVIRONMENT

Daimler’s Zetsche asks Berlin and Brussels to subsidise electric cars

Daimler CEO Dieter Zetsche on Thursday urged the EU Commission and the German government to provide financial assistance in the development of energy efficient electric cars.

Daimler's Zetsche asks Berlin and Brussels to subsidise electric cars
Photo: DPA

“To support the development of alternative engines, we need positive conditions,” Zetsche, who is also the head of the European Automobile Manufacturers Association (ACEA), told business daily Handelsblatt. “At the same time it’s necessary to build the appropriate infrastructure.”

Establishing new technology is unavoidably expensive, a cycle “we can only break if Europe supports the purchase of electric autos for a limited time,” he told the paper, adding that unified rules for the region would be ideal.

Zetzche can expect support from his German auto industry colleagues at a May 3 summit at the chancellery in Berlin, the paper said.

“We would welcome in the beginning phase government support for the acquisition of electric vehicles, which will be significantly more expensive than other vehicles,” BMW head Norbert Reithofer told the paper. “The EU Commission should also clarify how it plans to support electric autos.”

Meanwhile Volkswagen Chairman Martin Winterkorn also said he would like support to make electric cars a “reality on our streets.” And compared to what neighbouring country France has invested in similar programmes, this amount is “relatively low,” Winterkorn told the paper.

According to Handelsblatt, Germany is well behind other countries when it comes to subsidising the electric car market. In the US, customers receive tax breaks of more than €5,800, while Chinese buyers get some €6,700.

So far the government has only agreed to provide financial backing for research in the field, setting aside some €500 million for the goal of getting a million electric autos on German roads my 2020.

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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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