The steel industry is united in its stance: addressing the climate change challenge is not a matter of choice. However, the prevailing economic and geopolitical instability is hampering companies’ decarbonisation investments planned in recent years, and may even delay legislative targets, as new and pressing priorities demand immediate attention.

.This was the key takeaway from the final-day conference held today at Made in Steel, the international conference and exhibition dedicated to the steel sector. The event, titled ‘Road to the future: decarbonising the European steel sector while remaining competitive’, brought together industry leaders and experts to discuss the way forward.

In the European Union, blast furnace-based steel production remains dominant, accounting for 56.3% of output. The European Commission’s stringent targets for CO2 emissions reduction by 2030, along with the rising cost of carbon under the Emissions Trading System (ETS), have compelled leading steel producers to accelerate their decarbonisation strategies. These include transitioning from integrated-cycle plants to electric arc furnace (EAF) technologies, which rely on direct reduced iron (DRI) or hot briquetted iron (HBI), in addition to scrap, as primary inputs.

According to an analysis conducted by the Siderweb Research Office, 28 new electric arc furnaces (EAFs) are expected to become operational in the European Union by 2030, with a combined annual production capacity of approximately 43 million tonnes of steel. Of these, 17 plants will be equipped with an integrated pre-reduction facility, capable of converting iron ore into direct reduced iron (DRI) or hot briquetted iron (HBI). Among the 28 planned installations, 24 are intended to replace existing blast furnace-based production, corresponding to roughly 34 million tonnes per year, while four entirely new EAFs—each with an adjoining pre-reduction plant—will add fresh capacity to the market. Furthermore, five additional pre-reduction plants are slated for installation across the EU, aimed at supplying DRI/HBI to both existing electric arc furnaces and traditional blast furnace–basic oxygen furnace (BF-BOF) systems that are not scheduled for replacement.

To meet the CO2 reduction targets set by legislators, “we can pursue four main pathways, each with its own advantages and limitations: CCUS (carbon capture, utilisation, and storage); hydrogen; full electrification of the production process; and the use of biomass,” explained Carlo Mapelli, Professor at the Politecnico in Milan during the opening of the conference.

In Italy, approximately 80% of steel production is already carried out using electric arc furnace (EAF) technology. This method results in significantly lower carbon emissions around 100 to 200 kilograms of CO2 per tonne of steel produced compared to the 1,800 to 2,000 kilograms per tonne emitted through the integrated blast furnace route.

Domestic steelmakers “have already committed substantial resources to achieve these results. Our Chalibria steel was the first in Italy to be ‘voluntarily labelled’ as ‘green’ and among the first in Europe,” stated Carlo Beltrame, Business Development Manager and CEO of AFV Beltrame Group for France and Romania. “Yet, across Europe, billions of euros in public funding are being directed to companies transitioning from the integrated cycle to electric arc furnaces. For those of us already operating with EAF technology—nothing.”

The Feralpi Group, meanwhile, “has decided not to halt” its decarbonisation strategy, as explained by Maurizio Fusato, Head of Ecological and Energy Transition at the company. “We will make major investments to further electrify our production processes, culminating in the installation of the first two rolling mills in Europe that operate without reheating furnaces eliminating gas consumption altogether.” “Between 2022 and 2024, we reduced our Scope 1 and Scope 2 emissions by 35% through electrification and the use of both self-generated and purchased renewable energy,” he added. “The real long-term challenge will be decarbonising Scope 1 emissions that cannot be electrified. We also intend to address Scope 3 emissions by engaging the entire value chain.”

Press Office
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Elisa Bonomelli
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Made in Steel is the leading international Conference & Exhibition for the steel industry, organized by siderweb  The Steel Community, Italy’s premier platform for information, analysis, and consulting in the steel sector. Made in Steel is a Conference & Exhibition. Combining business opportunities with in-depth discussion, the event offers a dual function: trade fair and cultural forum. Through conferences, panels, and round tables, it fosters “competitive cooperation” and knowledge sharing—essential levers for corporate growth. Since 2023, the event has been ISO 20121 certified for sustainable event management.

siderweb  The Steel Community is Italy’s only online media outlet exclusively focused on the steel industry. Known for its objective and analytical style, it is a benchmark for industry professionals. Since 2009, it has tracked weekly prices for raw materials and steel products on the domestic market now exceeding 60 price points using a methodology certified by the Laboratory of Statistics, Data, Methods and Systems at the University of Brescia. Since 2022, it has published 5 weekly indices covering scrap, carbon steel, long and flat products, and stainless steel. Since 2005, it has organized Made in Steel the international Conference & Exhibition dedicated to the steel supply chain curating its content, including conferences, interviews, and market outlooks.

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