The coalition brings together equipment manufacturers, consumers, financial institutions, government and other stakeholders. The primary objective of the association is to revive the Ukrainian industry through an environmentally friendly, green transformation of steel production. This endeavor will support the national economy and population while also becoming a driver for supporting the EU’s decarbonisation programme.
“We stand at the threshold of great opportunities. Establishing a complete cycle of green steel production in Ukraine is entirely feasible. This will undoubtedly strengthen both Ukraine and the EU countries. We have previously emphasized that during the post-war reconstruction, Ukraine must be regarded as part of the European Union, as an integral part of its production chain. This is why Ukraine’s involvement in the green steel initiative holds tremendous potential. The production chain for such products necessitates the availability of iron ore, energy, and sales markets. Currently, we are fully self-sufficient in terms of iron ore. However, other processes must be implemented in collaboration with the Ukrainian government, businesses, and partners. For instance, the Ukrainian energy market is still in the process of developing and implementing an appropriate regulatory framework. Another crucial issue is market access, including capital markets. At present, most EU steel producers are striving to secure supplies of DRI pellets. This calls for alliances. It is time for ore suppliers and steel producers in the EU to unite,” added Yuriy Ryzhenkov.
As part of its green transition strategy, the Group plans to focus on two main areas:
- Enhancing the quality of iron ore products to DRI-class, with a gradual increase in production capacity.
- Upgrading Zaporizhstal’s and Kametstal’s facilities to adopt a more environmentally friendly electric arc furnace method for steel production using DRI-class pellets (with the prospect of transitioning to hydrogen, including hydrogen produced using renewable energy). Additionally, they aim to expand the range of rolled products.
According to the roundtable participants, the estimated cost of the medium-term green transition strategy until 2035 is approximately USD 35 billion. These investments will ensure the production of up to 15 million tonnes of green steel annually.