Europe’s steelmakers should give up ironmaking: GravitHy’s Noldin

Steelmakers in Europe should give up ironmaking to specialist companies and focus on their core competency of steelmaking and value addition, says José Noldin, chief executive of prospective France-based low-emission ironmaker GravitHy.

The firm aims to commission its plant in Fos-sur-Mer by 2028 and will have its own captive hydrogen production. The location was chosen for its access to land, water and especially electricity. France has a stable and reliable grid system which is fed by a clean, low-CO2 energy mix, and GravitHy will be connected to the grid, Noldin said at Monday’s Fastmarkets International Iron Ore & Green Steel Summit 2024 conference in Vienna attended by Kallanish.

The firm is looking at other locations for further plants. One of these is Finland but the majority are outside of Europe due to more favourable conditions for producing green iron, he noted. “We believe iron production can stay in Europe but it doesn’t need to be only in Europe,” Noldin said.

The main enablers needed for decarbonisation to take place are access to different financial instruments for capital and operational expenditure, and the need for government to create demand for green steel. The automotive sector has started buying green steel already, but public procurement is also necessary to create sufficient demand, he noted. Moreover, clear green steel standards are needed to avoid greenwashing.

Recent years have seen lots of hydrogen project announcements based on enthusiasm, Noldin pointed out. “There was lots of hype … You needed to be seen doing something with hydrogen.” However, the fundamentals have not been there.

“The market is coming to its senses. For good projects, the money is there. It’s a question of risk profile for the different investors … and how early or mature each one would like to see the different opportunities … There is a genuine interest,” he added.

In terms of markets to sell green HBI to, “we need to generate a snowball effect,” Noldin said. When one market becomes really committed, other customers will follow, the ceo noted, adding that “a combination of carrot and stick” is necessary. The EU is a good location for this as the Green Deal enshrines into law the need to deliver green products.

Europe alone is likely to see 15-30 million tonnes/year of merchant metallics demand by 2035.

Ideally, there should be a sufficient number of merchant metallics producers to create security of supply and liquidity in the market, Noldin said, describing this as his “dream”. The market is likely to be a combination of spot and long-term contract business.

“European iron and steel can be competitive but it’s a competitive based on sustainability. We need to look beyond pricing and cost criteria. Transparency is key. Traceability is key. Circularity is key,” the ceo said. “We are not competing for the same applications” as the cheap steel from other countries, he concluded.

Adam Smith Poland