Euroepan Steel Forum: Energy costs and innovation dominate discussions

The availability of affordable low-carbon energy, technological innovation and growing international competition were among the main topics at the Association for Iron & Steel Technology (AIST) European Steel Forum, held in Udine, Italy, from October 27 to 29, 2026.

Hosted by Italian plant manufacturer Danieli, the conference brought together steel producers, technology suppliers and researchers to discuss the challenges facing European steelmaking as the industry moves towards lower-emission production.

Energy supply remains major obstacle to decarbonisation

High electricity costs and insufficient renewable energy capacity continue to complicate investment decisions for European steelmakers.

Thomas Bürgler, CEO of Austrian research organisation K-1 Met, illustrated the scale of future energy requirements. According to his assessment, producing steel with net-zero CO₂ emissions at voestalpine using exclusively renewable energy would require electricity equivalent to approximately half of Austria's total energy consumption.

Antonio Marcegaglia, Chairman and CEO of Marcegaglia, highlighted regional differences in access to competitively priced clean energy. While Nordic countries benefit from favourable renewable energy conditions and southern Europe has solar potential, other regions face greater constraints.

Marcegaglia also identified nuclear power as a possible component of future industrial energy supply. However, regulatory restrictions and national energy policies limit its applicability for some European steelmakers.

Steelmakers seek pragmatic transition strategies

Conference participants emphasised that decarbonisation must be accompanied by measures to maintain industrial competitiveness.

Discussions addressed hydrogen-based direct reduction, electric arc furnace conversions, energy efficiency and the availability of suitable raw materials.

Representatives from Arvedi, SSAB, Stahl-Holding Saar and Salzgitter examined the technical and economic challenges associated with transforming existing production facilities.

The availability of high-quality scrap and direct reduction feedstock emerged as another important factor, alongside the need for reliable energy infrastructure.

Participants also discussed how changing energy costs could influence the geographical distribution of iron production, potentially increasing international trade in hot-briquetted iron and other metallic feedstocks.

Innovation and industrial competitiveness closely linked

AIST Executive Director Ron Ashburn stressed the importance of research and technological development, particularly as artificial intelligence creates new opportunities for industrial process optimisation.

Technology suppliers including Danieli, Primetals Technologies and Tenova presented approaches to reducing energy consumption and emissions.

Danieli highlighted heat recovery and energy efficiency solutions, alongside hydrogen-ready direct reduction technology developed jointly with Tenova.

The discussions also addressed weak European steel demand, import competition and the importance of trade measures that support domestic production.

A recurring conclusion was that Europe's steel transition will depend not only on technological progress but also on competitive energy prices, adequate infrastructure and a regulatory framework that enables investment without undermining industrial production.

Source and Photo: AIST European Steel Forum