A new report from Leadership Group for Industry Transition (Leadit) revealed that the EU's green steel projects, targeting one-third of the region's steel production, could consume 19% of the EU's renewable hydrogen target by 2030. This amounts to 1.7 million tons annually, potentially increasing to 1.9 million tons by 2045. The demand for renewable electricity for these projects is expected to reach up to 135 terawatt-hours each year.

The report cautioned that company plans lack transparency, suggesting actual resource demands may exceed current estimates. Leadit noted that recycling scrap and importing hot briquetted iron could substantially reduce the need for renewable hydrogen and electricity but would also involve trade-offs, such as reduced self-sufficiency and impact on jobs.

For a successful shift from fossil fuels to renewables in steel production, Leadit underscored the need for accurate estimates of renewable electricity requirements and alignment with the energy and industrial sectors. The report urged transparent planning from the EU, member states, and steel producers to ensure balanced electricity demand and achieve decarbonization across industries, which will be essential in meeting the EU's green transition goals.