Posted on 11 Mar 2022
European industrial energy consumer groups – including steel and non-ferrous metals producers – March 9 applauded a new European Commission drive to reduce the EU’s overdependence on Russian fossil fuels “well before 2030” and promote state aid on a temporary basis to companies facing high energy costs.
The EC’s REPowerEU initiative, launched March 9 to achieve joint European action for more affordable, secure and sustainable energy, aims to alleviate security of supply concerns that have been exacerbated by Russia’s military attack on Ukraine, an EC factsheet said.
As well as introducing an immediate start to price mitigation and measures to store gas for next winter for both EU companies and households, REPowerEU aims to look at the possibility of retail energy price regulation and consult with member states on a potential temporary framework to grant aid to companies facing high energy costs, according to the factsheet.
Actions will be taken to improve electricity market design and guidance will be given on temporary tax measures on windfall profits and use of emissions trading revenues, so governments can ease the pressure on household consumers, according to the EC document.
The EC will work with international partners to move away from Russian gas. A hydrogen accelerator will be used to develop infrastructure, storage facilities and ports, and replace demand for Russian gas with additional 10 mt of imported renewable hydrogen from diverse sources and an additional 5 mt of domestic renewable hydrogen, the factsheet said. The subsequent acceleration of the electrification process and move towards renewable hydrogen will help industrial decarbonization and enhance low-carbon manufacturing capabilities, it said.
The group of European industrial energy consumer associations, including steel and metals associations Eurometaux, Eurofer, EuroAlliages, Euromines, along with Glass Alliance Europe, the European Cement association Cembureau and The European Ceramic Industry Association Cerame-Unie, said they considered that urgent actions are needed in the short term to alleviate the burden of high energy costs on industries and preserve the future of Europe’s industrial base. “This is needed to minimize risks of energy shortage in order to face a crisis whose evolutions and impacts are unpredictable,” they said in a joint March 9 statement.
The associations stressed their members’ vulnerability amid “a highly complex geopolitical context” arising from the Russia-Ukraine conflict. A string of steel and aluminum producers throughout Europe have reduced production levels in recent weeks and months due to high electricity costs.
“The European industrial energy consumers stand ready to work with EU decision-makers to design together the adjustments to the EU energy and climate policy that are needed in the face of this new situation. In these uncertain times, we need to avoid additional shocks and provide predictability to European industry,” the industries’ statement said.
Source:Platts
