Industry News

Hydrogen below $3/kg needed for breakeven green steel in Europe: industry body

Views : 108
Update time : 2022-05-12 20:15:42
Delivered hydrogen prices of below Eur3/kg ($3.10/kg) would be needed for breakeven green steel production in Europe in the current high energy price environment, industry group Hydrogen Europe said in a new report.
The cost of producing renewable hydrogen via alkaline electrolysis in Europe was assessed at Eur10.70/kg ($11.18/kg) May 11 (Netherlands, including capex), based on month-ahead power prices, as per S&P Global Commodity Insights data.

Hydrogen prices would need to fall to below Eur1.50/kg in an "adjusted prices scenario," which assumed prices falling to reflect potential future fossil fuel price drops, Hydrogen Europe said in its "Steel from Solar Energy" report, published May 11.

The estimated breakeven CO2 price in both scenarios is Eur140/mt, it said.

European carbon allowance prices for December 2022 delivery under the emissions trading scheme settled at Eur88.83/mtCO2e on May 11, according to a Platts assessment published by S&P Global.

The report models the costs for hydrogen-based direct reduction of iron ore coupled with an electric arc furnace, versus a base case of blast furnace steel production.

Blast furnace steel production typically produces around 1.6-2.0 mt of CO2 per ton of crude steel.

Related News
Read More >>
DECO Australia champions sustainable architecture with ASI-backed aluminium commitment DECO Australia champions sustainable architecture with ASI-backed aluminium commitment
Jun .05.2025
DECO Australia champions sustainable architecture with ASI-backed aluminium commitment
DECO Australia champions sustainable architecture with ASI-backed aluminium commitment DECO Australia champions sustainable architecture with ASI-backed aluminium commitment
Jun .05.2025
DECO Australia champions sustainable architecture with ASI-backed aluminium commitment
Metro Mining logs 26% growth in bauxite deliveries, backed by infrastructure gains and cost edge Metro Mining logs 26% growth in bauxite deliveries, backed by infrastructure gains and cost edge
Jun .05.2025
Metro Mining logs 26% growth in bauxite deliveries, backed by infrastructure gains and cost edge
Metro Mining logs 26% growth in bauxite deliveries, backed by infrastructure gains and cost edge Metro Mining logs 26% growth in bauxite deliveries, backed by infrastructure gains and cost edge
Jun .05.2025
Metro Mining logs 26% growth in bauxite deliveries, backed by infrastructure gains and cost edge