Government - Rehlinger: No permanent subsidies for the steel industry
Saarland's Minister President Anke Rehlinger (SPD) does not believe that the state's steel industry will require financial aid from the state in the long term. "Investment aid is needed now, but this should not become a permanent subsidy," she told the German Press Agency in Saarbrücken. There is "simply still competition with dirtier steel at the moment". That is why we are working towards the right competitive conditions for "green steel", for example through quotas for rail. "A permanent subsidy is not the political idea behind this." But it is necessary for "a few years".
The steel industry is an innovative sector and "highly competitive", she said. "I am also certain that the topic of green steel and demand will increase significantly. And then we will be at the forefront of innovation and others will have to follow this path first."
In Saarland, there is "one of the largest steel transformation projects in Europe" - the conversion is more comprehensive than at other locations: "This is of course the biggest possible step into the future and the biggest possible lever for climate protection."
On December 19, the EU Commission approved federal and state subsidies totaling 2.6 billion euros for the climate-friendly conversion of the steel industry in Saarland. From 2027, new blast furnaces will produce steel using hydrogen instead of coke or coal. The Saar steel industry accounts for around 13,000 jobs: "It is important for the overall mood in Saarland that this structural change can succeed," she said.
As climate-friendly steel is more expensive than conventional steel, support for operating costs is included in the funding. The decisive factor for profitability will be how energy prices and, in particular, the costs of producing hydrogen develop. "The greater and the faster a large demand develops, the more investment there will be in electrolysers and hydrogen infrastructure," said Rehlinger.
For Saarland, it is important to have a "huge demand potential" for hydrogen. This means that the necessary infrastructure must also be geared towards Saarland. "The question of whether you are located away from or next to a hydrogen infrastructure will certainly also be decisive for the development of a region," said the Minister President.
The fact that Saarland will be "right in the middle" of a European hydrogen transport network is "a great insurance policy for the future, not only for the steel industry, but for all those who are still producing with CO2 emissions and would have an alternative at this location".
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- The steel industry in Saarland, led by Minister President Anke Rehlinger from the SPD, is currently undergoing a large-scale transformation project, with the aim of producing climate-friendly steel using hydrogen instead of coke or coal.
- According to Rehlinger, although the steel industry in Germany needs temporary support due to its transition to green steel, a permanent subsidy is not the long-term solution.
- In Germany, particularly in Saarbrücken, Saarland, the steel industry is considered a competitive and innovative sector, and Rehlinger is optimistic about the future of green steel, with potential demand increasing significantly.
- The German government, along with the Saarland state, has approved subsidies worth 2.6 billion euros for the climate-friendly conversion of Saarland's steel industry, which will create jobs while reducing CO2 emissions.
Source: www.stern.de
