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Swiss Re — Swiss Steel Group — Swiss Re SRI Green Steel Webinar April 2023
15 slides from Swiss Re's conference presentation, April 2023
Slide 1: Green Steel: Decarbonising a Hard-to-abate Sector
Green Steel: Decarbonising a Hard-to-abate Sector Green Steel from the industry perspective – Robert Baron
Slide 2: Swiss Steel Group is one of the leading suppliers of special long steel solutions
Swiss Steel Group is one of the leading suppliers of special long steel solutions 1,663 kt >70 HQ in Lucerne, Sales volume Locations CH in 2022 Other Consumer goods 77% >30 Construction 9% Engineering Countries 3% Plastic 3% 44% Mobility Steels molding 4% 15% ~10,000 Energy 8% EUR 4,051 mn Revenue 2
Slide 3: SSG's production is 100% EAF-based marking our products 'green by nature'
SSG’s production is 100% EAF-based marking our products ‘green by nature’ Steelmaking with electric arc Decarbonized Emissions (Scope 1+2) furnace electricity kg CO2 per ton of crude steel Blast 2’200 ~80% Furnace Route 1’910 + Global average 195 45 Electric Arc Scrap Furnace Source: Worldsteel; CRU
Slide 4: Europe has committed to gradually decrease its CO2 emissions to net zero until 2050
Europe has committed to gradually decrease its CO2 emissions to net zero until 2050 Climate initiatives CO2 emissions in the EU (actual and targets) Million metric tons Keep rise in mean global -55% Paris temperatures below 2°C above 3’754 agreement pre-industrial levels1 -34% Make the European Unio
Slide 5: Naturally, most Green Steel projects announced in Europe; Germany with most projects
Naturally, most Green Steel projects announced in Europe; Germany with most projects Announced Green Steel projects by continent Exemplary integrated steelmakers with Green Steel No. of projects projects 46 33 Other EU 12 5 6 13 Germany 2 2 Africa South North Australia Asia Europe AmericaAmerica Sou
Slide 6: What is Green Steel? No definition generally established yet
What is Green Steel? No definition generally established yet Overview of some attempts to establish green steel definition Selection “Steel produced with lower CO2 emissions than conventional BF/BOF route” Other definitions Source: Websites; SSG Corporate Strategy
Slide 7: Exemplary full scale Green Steel projects with Green H2 Direct Reduction
Exemplary full scale Green Steel projects with Green H2 Direct Reduction • Prominent Green Steel green field project • Aims at leveraging abundant Swedish hydropower supply for green H2 production to be used for direct reduction of iron ore • Green field approach founded in 2020, secured €260m in Se
Slide 8: Example Salzgitter SALCOS project (1/2)
Example Salzgitter SALCOS project (1/2) Source: Company website
Slide 9: Example Salzgitter SALCOS project (2/2)
Example Salzgitter SALCOS project (2/2) Source: Company website
Slide 10: Drivers of Green Steel transition
Drivers of Green 1 Steel transition 2 Reduction of free CO2 allowances for EU steel companies Sustainable “Zeitgeist” % 100 98 • End consumers more aware of sustainability issues 52 • Companies aiming to become greener and market 0 themselves as such 2025 2026 2030 2034 • Many set decarbonization ta
Slide 11: Implications of the Green Steel transition
Implications of the Green Steel transition Expected technological transition of German Implications primary steel making • Required massive investment in non-fossil power generation and hydrogen infrastructure 28 29 30 30 31 31 – Increase in securing energy supply, e.g. PPAs 16% • Est. CAPEX require
Slide 12: Use case: German green hydrogen supply
Use case: German green hydrogen supply H2 demand forecast vs domestic production capacities1 TWh, 2030 & 2045 2030 2045 440 German power mix 2021 100 28 45.8% 490 40.9% 14 14 TWh Demand Supply Demand 13.3% Fossil Nuclear Renewables Demand Government coalition agreement National H2 strategy 1. Assumi
Slide 13: Thank you
Thank you Source: Thomas Andrae
Slide 14: April 2023 | SRI Green Steel Webinar
April 2023 | SRI Green Steel Webinar
Slide 15: Legal notice
Legal notice ©2023 Swiss Re. All rights reserved. You may use this presentation for private or internal purposes but note that any copyright or other proprietary notices must not be removed. You are not permitted to create any modifications or derivative works of this presentation, or to use it for
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