8 August 2025 – Green hydrogen, originally intended to be the fuel of the EU Green Deal, will not be available in sufficient quantities in the long term. This long-known problem is now once again being used as a pretext to obtain compensation for the costs of natural gas.
In this Stainless Espresso
The Homeopathic Hydrogen and the German Steelmakers
That there is a problem not only in Germany and Europe, but worldwide, with producing sufficient green hydrogen is nothing new. As early as 2021, when the EU Green Deal really began to gain momentum, we repeatedly pointed out what a utopia the European Commission – and Germany as well – was chasing on this issue. Even then, it was clear that natural gas would be needed for a long time to substitute for the non-existent hydrogen, especially the green variety.
It Was Always About Billions in Tax Subsidies
With former Green Economy Minister Robert Habeck, an ally was found who was willing to push through more than €7 billion in subsidies for the conversion of steel production – regardless of whether hydrogen was available in sufficient quantities at the time, or ever would be. The tax billions were gladly accepted. Whether the then-economy minister was simply poorly advised on this issue or knew about it in advance, we do not know.
Green Hydrogen Was Never the Goal
In recent months, particularly in SPD-governed Saarland, calls have grown louder that something must now be done – even though these hydrogen problems had long been known. The local press is increasingly focusing on the issue, distracting from the fact that something entirely different destroyed the hydrogen fantasies of German steelmakers: the rising cost of natural gas and increasing CO2 prices.
The original plans were based on a different scenario, one that became irrelevant in 2022 with the outbreak of the war between Russia and Ukraine.
At the time, Germany and Europe still assumed that natural gas could be imported from Russia indefinitely and at low cost. For there was never any expectation that green hydrogen would be available in sufficient quantities in such a short time.
Calls for More Subsidies from Voestalpine as Well
The Austrian steelmaker Voestalpine appears to have struggled with the EU’s CO2 emission limits for steel for quite some time. The problem should now to be solved by extending the free allocation of CO2 certificates – at least, that is what the corporation is demanding.
Contrary to most other EU member states, the steelmaker has significantly higher CO2 emissions per tonne of crude steel and therefore benefits far less from the billions in indirect subsidies provided through the EU ETS system than other EU plants.
High CO2 Emissions Known for Years
These higher CO2 emissions have been known there for at least since 2011, yet nothing has changed in recent years. A look at the actual emissions compared to the quantity of crude steel produced is enough to see this.
Now, after decades of subsidies from the EU ETS system and other sources such as electricity price compensation, calling again for subsidies instead of implementing the goals of the European Emissions Trading Scheme and the Green Deal is more than just surprising.
In the end, one must simply conclude: the Green Deal has effectively burst like a soap bubble. It is only being upheld for ideological reasons – otherwise Brussels would have to admit to a complete failure.
Short Creative Break at Stainless Espresso!
Stainless Espresso is taking a short creative break and will be back in full for our readers from Monday, August 18, 2025. The Gerber Group team will, however, remain fully available by phone at +49 7642 9282851 or by email at sales@gerber-steel.com. We look forward to your inquiries!
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