Stegras’s billion-project is based on the assumption that political decisions will make fossil-based steel more expensive. Now the EU is considering easing its emissions requirements—and the Swedish government is trying to block the change to protect the risky investments it has funded with taxpayer money.
Stegra and SSAB have invested hundreds of billions in the production of hydrogen-based steel. But the business model relies on the EU’s emissions trading system gradually driving up the cost of coal-based steel. Now the European Commission is considering slowing the tightening of emissions requirements, which would make traditional steel cheaper than planned and undermine the financial viability of green steel projects, reports Daily News (DN).
Prime Minister Ulf Kristersson and the Prime Minister of Finland Petteri Orpo have therefore sent a letter to European Commission President Ursula von der Leyen, in which they write:
”European industries have invested billions based on an established policy framework. Undermining this foundation would penalize early adopters and send an extremely unfortunate and harmful signal.”
Handelsbanken's Commodities Analyst Christian Kopfer notes at the same time:
”If the EU postpones the transition of the steel industry, it will have a negative impact on Stegra, whose business model is fundamentally based on the premise that it will become more expensive to emit carbon dioxide.”
Wallenberg Warns
Following the Wallenberg family’s takeover in Stegra, the head of the family has also Jacob Wallenberg warned about what will happen if policies do not support risky business ventures:
– Many companies in Northern Europe have already invested in technologies; these investments will come to nothing if the ETS is changed.
Stegras's press secretary Karin Hallstan On the other hand, they downplay the risks and state:
”Lower ambitions would be unfortunate, especially for the climate, but Stegra would still be highly profitable.”
Criticism is growing
At the same time, the news has sparked strong reactions. Commentator Henrik Jönsson, who—like Frihetsnytt—has long warned that the ”green” initiatives will not succeed, writes on X:
”Episode 49152 of ’I Told You So.’ Nothing but nominal ’green steel’ will ever come out of the green fantasy economy:”
"Green steel" is just a huge scam where capitalists are lining their pockets at the expense of the people—this madness must stop.
It would be, though
It would be absolutely hilarious if the EU tripped up Wallenberg so he'd take a real tumble. But I'm sure they'll manage just fine, as usual.
"Green steel" is a fantasy that will never work.