Steel Production Returning to the U.S.

Who would have predicted that renewable energy would save the steel industry?

 

I think so, yes. Probably at first. Not sure what you mean.

 

I would assume they are referring to secondary steel (ie., recycled steel) in arc furnaces. We don't have a lot of quality iron ore in the US anymore, but still have lots of scrap.

 

I thought this was a story about Reardon steel. Oh well.

Good for the “Made in America”, actually brought to you by Bidenomics.

https://home.treasury.gov/news/press-releases/jy1477

 

Manufacturers would want to use any material that would make things cheaper to build. Don't think they would be able to use it for structural steel in a building but pressed steel panels for things like washers and dryers?, sure. Might be cheaper than paying the shipping for overseas made steel.

 

I picked up a bunch of this back in 2020 and they recently built a plant nearby. I’m pleased.
NUE Nucor steel.

 

Biden did that

 

I believe there will also be price / tax offsets for green steel vs traditional steel for carbon reduction in building the strucvture.

It's all about the tax credits to encourage less carbon.

'Green steel will become cheaper than grey in US as soon as hydrogen tax credits kick in': analyst | Hydrogen news and intelligence (hydrogeninsight.com)

The forthcoming US hydrogen tax credits of up to $3/kg will make steel produced using green H2 the cheapest type of steel in the US, according to analyst Rethink Energy.

When the H2-DRI process is combined with a renewables-powered electric arc furnace to turn the iron into steel, the resulting product is known as green steel.
“The US can be regarded as ‘ahead of the competition’, when it comes to the price of green steel,” the UK-based analyst writes in a report entitled Green Steel Premium: Myth or Reality?

“With already very low prices for green hydrogen production (around $3.35/kg) the imminent subsidy of up to $3/kg as part of Biden’s Inflation Reduction Act (IRA) will prompt green steel to undercut all other forms of steel manufacturing as soon as the subsidy kicks in, in 2024.”
.................
The report goes on to say that “blue steel” produced using blue H2 derived from natural gas with carbon capture and storage will also be cheaper than grey steel made using coke, thanks to a smaller subsidy under the IRA (see panel below) — but will still be more expensive than green steel.

The EU’s plans to enforce a carbon border adjust mechanism in 2026 that will tax imports according to their carbon content will make US green steel an attractive proposition for European buyers, Rethink says. “The divergence in price between sustainable steel processes and fossil fuel based methods past 2025 will only represent the final nail in the already built coffin for traditional steel manufacturing procedures,” it

 

I believe that is blue steel but it will still get a significant tax advantage due to reduced carbon footprint. downside is it will consume nat gas which will increase price of nat gas for FPL and others. hopefully the state could add some hdyrogen based operations with all of our sunshine and seawater

 

Finally our steel guys can get back to work

 

Will it be tariff free? Asking for an old buddy of ours.

 

I thought tax breaks for evil corporations were bad…

 

I guess my Ayn Rand Atlas Shrugged objectivism joke didn’t land with you. I will try harder next time.

 

Maybe it's just a label and it's really NOT green at all?

 

Not if the Dems pass these tax-giveaways.

 

When it’s got a green label it’s beyond reproach….