Green steel production: EU Commission approves billions in aid for Saarland
Of the 2.6 billion euros, the federal government is to bear 70 percent and Saarland 30 percent. Federal Economics Minister Robert Habeck (Greens) spoke of "outstanding good news for the industrial transformation in Saarland" and for the employees. The subsidies will be used to replace around two thirds of the existing coal-fired blast furnaces in the Saarland plants. The new steel production facility is scheduled to go into operation in 2027 and will save around four million tons of carbon dioxide annually in the medium term.
The EU Commission justified the release of the funds by stating that the state funding would contribute to the "development of the industry", among other things. After Salzgitter AG and Thyssenkrupp, SHS is the third company to receive extensive aid for the conversion of its steel production.
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- The aid of 2.6 billion euros, partly funded by Saarland, is seen as a significant step towards free, green steel production in the region by Federal Economics Minister Robert Habeck.
- Despite criticisms regarding state aid for industrial transformation, the EU Commission granted billions to Saarland, citing its contribution to the Green EU Commission's agenda for the development of the steel industry.
- For years, the German steel industry has been searching for ways to reduce its carbon footprint, particularly in steel production, and the aid to SHS in Saarland could offer a free and innovative solution.
- The Green EU Commission's decision to grant billions in aid for steel production in Saarland signifies a significant shift towards sustainable and responsible industrial practices in Europe.
- Billions in aid from the EU Commission will help SHS in Saarland transition from coal-fired blast furnaces to a free and carbon-neutral steel production facility, setting an example for the steel industry in Europe.
Source: www.stern.de
