The industrial association France Hydrogène recommends that environmentally friendly steel used in the European automotive sector be defined as being made from direct reduction iron (DRI) using a high proportion of renewable or low carbon hydrogen, while meeting strict emission thresholds set by the EU.
The Association asserts that hydrogen-based DRI technology combined with electric arc furnace (EDP) technology is an important production area in Europe to maintain competitive steel production in the medium and long term. Replacing blast furnaces with EDPS without providing European DRI production could lead to the displacement of a significant part of the steel value chain outside the continent.
European H2-DRI projects already exist, according to a note by France Hydrogène, reviewed by Kallanish. The regulatory framework should now reflect the importance of this production route, the company warns.
The Corporate Average Fuel Economy (CAFE) Standards, the EU rules setting CO2 emission targets for automakers, are currently being revised to include a steel production flexibility mechanism that allows automakers to offset their emission targets by purchasing environmentally friendly steel.
France Hydrogène says this represents a unique opportunity to boost demand for low-carbon steel, but warns that it depends on how it is designed. "Depending on how flexible the size and design of this equipment will be, it can provide a European steel base for reinvestment and transformation," the note says.
The association wants the Ecodesign Regulation (ESPR) to reduce the emission limit for Class A compliance to 0.7 tons of CO2 per ton of finished hot-rolled roll, and the CAFE regulation states that only Class A steel is suitable for the automotive market. It also recommends that DRI production be carried out in Europe so that the steel meets the "Made in the EU" requirements in accordance with Article 7 of the Industrial Accelerators Act.
France Hydrogène calls for the flexibility of steel production in the automotive pilot market to be mainly maintained at 7%, and the pilot market is planned to be launched in 2030, starting with a flexibility of 2% and gradually increasing to 7% by 2035, which will increase the demand for environmentally friendly hydrogen-based steel.
However, the steel industry is generally skeptical about hydrogen as a reliable and economical source of energy. Last year, Alain Le Grix de la Salle, head of
