Europe green steel market size was valued at USD 0.73 billion in 2023 and is projected to grow from USD 1.29 billion in 2024 to USD 64.82 billion by 2032 at a CAGR of 63.2% during the forecast period.

The steel industry, long associated with high carbon emissions, is undergoing a radical transformation in Europe. The green steel market is emerging as a cornerstone of the continent's decarbonization strategy, driven by stringent climate policies, technological innovation, and growing demand for sustainable materials. This article examines the current state, key drivers, challenges, and future prospects of Europe’s green steel industry.

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LIST OF TOP GREEN STEEL COMPANIES IN EUROPE/ LIST OF TOP GREEN STEEL COMPANIES:

• ArcelorMittal (Luxembourg)
• Blastr Green Steel (Norway)
• H2 Green Steel (U.S.)
• LIBERTY Steel Group (U.K.)
• Outokumpu (Finland)
• Salzgitter AG (Germany)
• SSAB (Sweden)
• Swiss Steel Group (Switzerland)  
• Thyssenkrupp Steel (Germany)
• Voestalpine AG (Austria)

What is Green Steel?

Green steel refers to steel produced with minimal carbon emissions, typically using hydrogen-based direct reduction (H2-DRI), electric arc furnaces (EAFs) powered by renewables, or carbon capture and storage (CCS) instead of traditional coal-based blast furnaces.

Key Production Methods:

1. Hydrogen-Based Steelmaking (H2-DRI)

   • Uses green hydrogen (produced via renewable energy) instead of coking coal.

   • Companies like HYBRIT (SSAB, LKAB, Vattenfall) in Sweden are leading this shift.

2. Electric Arc Furnaces (EAFs)

   • Recycles scrap steel using renewable electricity (up to 75% lower emissions than blast furnaces).

3. Carbon Capture and Storage (CCS)

   • Captures CO₂ emissions from traditional steel plants for underground storage or reuse.

Market Drivers

1. EU Climate Policies & Regulations

• European Green Deal mandates a 55% reduction in emissions by 2030 (vs. 1990 levels).

• Carbon Border Adjustment Mechanism (CBAM) taxes high-carbon steel imports, favoring green steel.

• EU Emissions Trading System (ETS) imposes heavy fines on polluters, pushing steelmakers toward decarbonization.

2. Corporate & Consumer Demand

• Automakers (Volvo, BMW, Mercedes) and construction firms are committing to 100% green steel by 2030–2040.

• Consumers and investors increasingly favor ESG (Environmental, Social, Governance)-compliant products.

3. Government & Private Investments

• €100+ billion expected in EU green steel projects by 2030.

• Germany’s "H2 Green Steel" initiative and Sweden’s HYBRIT project are key examples.

4. Falling Renewable Energy Costs

• Declining costs of wind, solar, and green hydrogen make clean steel production economically viable.

Challenges & Barriers

1. High Production Costs

• Green steel is 20–30% more expensive than conventional steel (though costs are expected to drop by 2030).

2. Limited Green Hydrogen Supply

• Europe’s hydrogen infrastructure is still developing, with supply chain bottlenecks.

3. Technological & Logistical Hurdles

• Scaling up hydrogen-based steelmaking requires massive renewable energy capacity.

• Retrofitting old plants is costly and complex.

4. Global Competition

• China and India still dominate traditional steel production, but Europe leads in green steel innovation.

Future Outlook (2025–2035)

1. Rapid Market Growth

• Europe’s green steel market is projected to grow at ~25% CAGR (2024–2030).

• 30% of EU steel production could be green by 2030.

2. Policy Support & Incentives

• EU Innovation Fund and national subsidies will accelerate adoption.

3. Emerging Technologies

• Plasma-based steelmaking and biomass utilization may further reduce emissions.

4. Global Leadership

• Europe is set to become the world’s first green steel exporter, influencing global standards.

Information Source: https://www.fortunebusinessinsights.com/europe-green-steel-market-109931

Europe’s green steel revolution is reshaping one of the world’s most carbon-intensive industries. While challenges remain—cost, hydrogen supply, and global competition—the continent’s aggressive policies, corporate commitments, and technological advancements position it as a leader in sustainable steel production.

For investors, manufacturers, and policymakers, the message is clear: Green steel is no longer a niche—it’s the future. As Europe paves the way, the global steel industry must follow or risk being left behind in the low-carbon economy.