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ENERGY

Why Germany’s nuclear exit is posing tough questions about its energy future

The Bavarian village of Gundremmingen is so proud of its nuclear power station that its coat of arms is graced with a giant golden atom.

Why Germany's nuclear exit is posing tough questions about its energy future
Gundremmingen nuclear power plant. Photo: DPA

But change is coming to the village, with the plant facing imminent closure under Germany’s energy transition policy.

Former village mayor Wolfgang Mayer’s house has direct views of the imposing complex with its two 160-metre cooling towers — taller than the spires of Cologne Cathedral.

The plant still produces 10 billion kWh of power per year, though parts of it have already been shut down — enough to provide the entire Munich metropolitan region with electricity.

The power station will be decommissioned on December 31, 2021, along with two other facilities in northern Germany.

By the end of 2022, Germany will have achieved its goal of completely phasing out nuclear power, set by Chancellor Angela Merkel on May 30, 2011, in the wake of the Fukushima disaster.

SEE ALSO: Berlin agrees to compensate power firms for nuclear phase out

The plan represented a dramatic change of course by Merkel’s ruling conservatives, who just a few months earlier had agreed to extend the lifespan of Germany’s oldest power stations.

But it was met with widespread public support in a country with a powerful anti-nuclear movement, fuelled first by fears of a Cold War conflict and then by disasters such as Chernobyl.

Village church

In Gundremmingen, however, the decision has been a tough pill to swallow.

The nuclear power station has been “as much a part of the village as the church” and it feels as though “something is dying”, said Gerlinde Hutter, owner of a local guest house.

According to Meyer, it will take at least 50 years to remove all radioactive material from the site after the plant has been decommissioned.
The German government is still looking for a long-term storage site for the country’s residual nuclear waste.

Gundremmingen is not the only German village facing big changes as the country strives to implement its energy transition strategy.

Renewables have seen a spectacular rise since 2011 and in 2020 made up more than 50 percent of Germany’s energy mix for the first time, according to the Fraunhofer research institute — compared with less than 25 percent ten years ago.

The declining importance of nuclear power (12.5 percent in 2020) “has been compensated for by the expansion of renewable energies”, Claudia Kemfert, an energy expert at the DIW economic research institute, told AFP.

Nuclear power stations have therefore not been replaced by coal, though the fossil fuel does still represent almost a quarter of the electricity mix.

The gas dilemma

In fact, the phase-out of nuclear energy has been joined by another plan, announced in 2019, to close all of Germany’s coal-fired power stations by 2038.

This presents a particular challenge for Germany, which remains the world’s leading producer of lignite.

Mining for the brown coal, which is highly polluting, continues to lead to the destruction of villages in the west of the country in order to expand huge open-cast mines.

If Germany is to free itself from lignite, renewables such as wind, solar, biomass and hydropower will have to make up 65 percent of the energy mix by 2030.

Yet the country, which has long been at the forefront of wind energy in Europe, installed only 1.65 gigawatts (GW) of wind farms last year — the lowest level in a decade, according to the WindEurope advocacy group.

To meet the government’s targets, Germany would have to add 9.8 GW of solar and 5.9 GW of onshore wind annually, according to Kemfert.

But the development of new areas for wind or photovoltaic energy production is complex, with plans often coming up against resistance from local residents and the risk of damage to the landscape.

And unless storage and distribution can be improved via so-called virtual power plants, these new forms of energy do not have the same stability as thermal or nuclear power.

To secure its supply, Germany could therefore be tempted to build more gas-fired power stations.

But this would risk reinforcing its dependence on Russia, as illustrated by the controversy surrounding the construction of the Nord Stream 2 gas pipeline.

A gas-fired power station is already in the works for the town of Leipheim, just around the corner from Gundremmingen.

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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.

READ ALSO: 

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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