PwC study questions economic viability of Saarland's green steel Power4Steel plan
A PwC analysis challenges the cost competitiveness of the Power4Steel project, suggesting that traditional blast-furnace steelmaking will become uneconomic in Central Europe.
In a newly released study, PwC argues that the traditional blast-furnace method for primary steel will be uneconomic in Central Europe by 2040, and that even a hydrogen-based version will struggle to compete with producers in lower-cost regions. The analysis, prepared without an external client, points to higher energy, hydrogen and raw-material prices as the main barriers for a green steel route in Saarland. It suggests moving energy-intensive stages like direct-reduction iron production abroad and concentrating on secondary steel recycling and high-value specialties domestically.
The Saar steel holding company disputes the study, citing broader cost considerations and questioning the transparency of PwC's assumptions. Other economists argue that green steel could be viable only with strong policy support, such as cheap industrial electricity, subsidised hydrogen and protection from cheap imports. Trade unions stress the need for guaranteed markets for any green steel produced, warning that without them the subsidies could create a costly cycle.
