EUROPEAN STEEL TECHNOLOGY AND APPLICATION DAYS 2017 - ESTAD 2017

**Climate issues are inseparably linked with energy and industrial topics.** For (European) steel industry and in particular for voestalpine, this refers one the one hand to our **customers and markets** (nearly two thirds of Group revenue are generated with the segments energy and mobility), and on the other hand―equally important―to our **production processes and products,** which are crucially affected by the transformation process related to the global climate targets 2050. As a matter of fact, **steel industry** is not part of the problem, but due to its huge economic importance and its sustainable products **essential for the solution.** For example, steel applications for “energy transition” saves six times the energy and thus CO2 as consumed in their production. **Steel is key part of value chains that are fundamental for a low-carbon future.** But most of all it has to be understood, that **“less CO2” does not mean “less energy”.** Conventional steel production with blast furnace and blast oxygen furnace routes (still three quarter of global crude steel production) is―due to pure chemical-physical reasons―based on coal/coke as reducing agent as well as most important energy source. **Fossil sources are the basis of integrated energy cycles and nearly self-sufficiency with energy.** At the example of voestalpine alone, replacing fossils by renewables would correspond to an *additional* demand of 33 TWh or more than 30 water power plants. We have been consistently **working on breakthrough technologies with regard to low-carbon-steelmaking** for many years, **e.g. based on renewable hydrogen,** and are currently developing projects with the largest Austrian energy supplier. **However, there are key preconditions for transformation:** It has to be **feasible and realistic, not only from the technological point of view, but also economically.** And if politics declares **climate targets,** it has to make sure, that the **required energy is available at competitive prices and in sufficient quantities.** Otherwise, transformation will simply not happen or―even worse―**at the price of de-industrialization of energy-intensive sectors in Europe.** This is a price, that hopefully no one is willing to pay. **So let’s focus together on solutions, not only on political declarations.**