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ENVIRONMENT

German media roundup: Berlin’s botched biofuel summit

Tuesday’s “petrol summit” over the botched introduction of E10 biofuel has gotten a shellacking from all sides. Newspapers in The Local’s media roundup on Wednesday dose out a healthy portion of criticism for government and industry.

German media roundup: Berlin's botched biofuel summit
Photo: DPA

The high-level meeting in Berlin on Tuesday, which was meant to address drivers’ concerns about the new type of gasoline, did not seem to achieve its goal. On the day after the meeting, a chorus of criticism has gone up from consumer groups and politicians slamming the government’s decision to stick with the controversial fuel which contains 10 percent ethnol.

“The policy will remain because it’s the right strategy to replace oil but also from an environmental perspective,” Economy Minister Rainer Brüderle told a news conference.

Motorists have shunned E10 petrol due to worries it might damage their engines, even though 90 percent of vehicles can run on it, according to fuel association MVW. Consumers have largely stuck with traditional, more expensive grades, causing those stocks to run low.

At the Tuesday summit, which brought together automakers, oil company representatives and consumer and motorists’ organisations, it was decided that information about which vehicles can run on the fuel will be available at petrol stations across the country as a way to lessen insecurity among motorists.

But Gerd Billen, president of the Federation of German Consumer Organizations, called the results of the summit “disappointing” and accused the government of “contempt for consumers.”

Newspapers in The Local’s media roundup on Wednesday looked at the government’s approach to the biofuel imbroglio.

The left-leaning Süddeutsche Zeitung called the summit an overhyped event that ended up being a joke.

“Brüderle called the petrol summit amid much ballyhoo, selling it as if it were on a historical level with Helmut Kohl’s German reunification summit with Mikhail Gorbachev in the Caucasus. But the meagre results were diametrically opposed to the big lead-up. Whether consumers will eventually learn to accept the new fuel is uncertain. But it is certain that their trust in government and business has not been strengthened.”

The right-wing Berliner Morgenpost said the anger and confusion over the biofuel, and the government’s failure to really address it, will have political consequences.

“You can say a lot about the Greens, but they would have probably handled the introduction of E10 better. That’s because they still have respect for the wrath of the motorist. The Christian Democrats don’t appear to, and they will likely pay for that disregard on March 27 when voters in car-loving Baden-Württemberg go to the polls in state elections. Forcing E10 into motorists’ tanks, even if it’s good for them, is one good way for the CDU to make this election year an exciting and unpleasant one for themselves.”

The sensationalist mass-circulation Bild called the summit a “farce,” saying no one is ready to take responsibility for the debacle.

“This summit was a pathetic display for everyone concerned: for the government, which got us into the biofuel mess and completely underestimated the situation; for the oil companies, who shrug their shoulders while making a killing; and for carmakers, who haven’t clearly said which vehicles can run on the gas. The victims here are the drivers, the majority of which still reject the biofuel and are paying a high price at the pump because of it.”

The regional Cologne daily Kölner Stadt-Anzeiger wrote that part of the blame for the confusion lay with automakers, who don’t seem to trust the new fuel completely. But the editorial didn’t let politicians off the hook.

“Our federal politicians are indeed partly to blame for this breakdown. Past experience should have told them that introducing a new fuel can be problematic, but they didn’t act accordingly. In the light of what seemed to be a wonderful technical solution (to energy supplies and global warming), the concerns of citizens were just an afterthought. But that is not how one makes environmental policy, that’s how one discredits it.”

The Badische Zeitung from Freiburg pointed the finger at politicians and motorists as well.

“With the introduction of biofuels, the attempt is being made to put off the unavoidable renunciation of traditional combustion engines. And indeed, to do it through ecologically questionable means, if one considers the effect biofuel production can have on world food prices. Now it is time for consumers to step up and show if their only concern is for the well-being of their beloved vehicle, or if they’re ready to change their relationship to the car.”

The Local/kdj

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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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