The German steel industry’s demand for more electricity for hydrogen electrolysis, regardless of its location, will be 48 TWh by 2030. The German steel association WV Stahl reported this.
steel industry of German is negatively impacted by high electricity costs. The industry group said that the electricity price support package that was unveiled in November of last year represented a glimmer of hope.
But since the start of this year, businesses have been paying more for electricity than ever before due to the elimination of its third component. Which was a subsidy for electricity transmission fees.
Electric steel mills, which generate steel from scrap with comparatively low emissions, are especially impact by this. They have an especially strong need for electricity, ideally from renewable sources.
The difficulties are increasing because iron reduction technology based on hydrogen will eventually need four or 5 times additional electricity from the grid, according to WV Stahl. As a result, finding a solution to competitive pricing is still crucial.
The energy-intensive industries (EID) in Germany issued a warning in December of last year. Stating that the doubling of grid fees effective January 1, 2024, would further lower electricity prices—which are already hardly competitive.
Companies in the steel, chemical, and construction sectors are specifically includ in the EID.
Approximately 880,000 workers, or 15% of the manufacturing industry, are employe in Germany’s energy-intensive industries.
Germany produced 94.2 billion kWh of electricity in the third quarter of 2023, down 20.3% from the same period in 2022, as previously reported by SHREE METAL PRICES.
In the 3rd quarter of 2022, the amount of electricity generated from renewable sources rose by 8.1%. While the amount from traditional sources dropped by 42.9% year over year.