Třinecké Železárny, the largest steel producer in the Czech Republic, has announced a significant delay in its major decarbonization project. The company will now complete the construction of its electric arc furnace (EAF) and related infrastructure no earlier than 2030, instead of the previously expected 2028.
Reasons for the Delay in EAF Construction
The delay in the electric arc furnace (EAF) project is primarily due to multiple external factors. These include a lack of public support, uncertainty surrounding the Green Deal’s future direction, and the current unfavorable situation in the steel market. Additionally, the European market protection regulations remain unclear, making it difficult for Třinecké Železárny to proceed as originally planned.
Roman Heide, CEO of Třinecké Železárny, stressed that such a large-scale investment requires a favorable combination of policy developments in Europe and a better situation in the steel market. Currently, European market protection regulations are not clearly defined, which means that shifting to cleaner steel production technologies with the associated increased costs is not yet economically viable.
Třinecké Železárny’s Continued Commitment to Decarbonization
Despite the delay, Třinecké Železárny remains committed to decarbonizing its steel production. Petr Popelář, Chairman of the Board of Directors of Moravia Steel, a key shareholder in Třinecké Železárny, stated that the company is fully dedicated to making the necessary environmental changes. However, the company must adjust its timeline and approach to accommodate external market and policy conditions.
The company has pointed out that the decarbonization investment, though essential, does not immediately generate any commercial benefit. This forced investment will cost tens of billions of crowns, which the company believes could put them at a disadvantage compared to regions like China, MENA, and ASEAN, where government subsidies make it easier for steel producers to export steel at below-market prices.
Ongoing Decarbonization Projects and Future Plans
In January, Třinecké Železárny announced a €1 billion investment aimed at decarbonizing its steel production. Some projects are already underway, including the construction of an iron ore briquetting line, a combined cycle at the Energetiky Třinec power plant, and an ultra-high voltage power line. These projects align with EU carbon reduction requirements and will help Třinecké Železárny reduce emissions by 55% by 2030.
The Czech government has also promised to support Třinecké Železárny’s transition to environmentally friendly production methods, which will help the company maintain its competitiveness in the global market. The Czech government’s support, expected in March 2025, is crucial as the company moves forward with these ambitious environmental goals.
Třinecké Železárny will continue to monitor external market conditions and adapt its plans accordingly. The company’s commitment to reducing emissions and adopting green technologies remains a priority, even as it navigates the challenges of a competitive global steel industry.
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