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ENVIRONMENT

Car boss asks Merkel to rethink CO2 pledge

The president of the German Automobile Association (VDA) has written to Angela Merkel, asking her to retract her pledge to significantly reduce CO2 car emissions by 2025, it was reported on Tuesday.

Car boss asks Merkel to rethink CO2 pledge
Photo: DPA

The letter, seen by the Frankfurter Allgemeine Zeitung (FAZ), is dated May 8th and argues that the plan will cripple the German car industry.

“Dear Angela,” VDA president Matthias Wissman begins. “We cannot allow our powerful and strong premium sector, accounting for almost 60 percent of car manufacturing jobs in Germany to be regulated to death by arbitrary limits.”

In July of last year, the EU commission introduced draft regulation on CO2 emissions, which environment ministers from member states are due to finalize at their next meeting.

According to the FAZ, CO2 emissions in new vehicles are to be no higher than about 95 grams per kilometre by 2020, with that figure to fall to between 68 and 78 grams by 2025.

The new limits will have a greater effect on German manufacturers Audi, BMW and Mercedes than on competitors Fiat, Toyota and Ford, which produce cheaper, lighter models which consume less fuel.

The VDA is demanding “special credit” for producing environmentally-friendly electric cars, which it proposes could be exchanged for the right to continue manufacturing heavier models with higher CO2 emissions. It is also calling for a “reliable system” for measuring CO2 output.

Wissman does not just enjoy an epistolary relationship with the German chancellor, he formerly served alongside Merkel as a cabinet member in Helmut Kohl’s government.

The Local/kkf

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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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