MINEX Forum

Region: Europe

  • Pensana’s Saltend plant recognised as a strategically important UK project

    Pensana’s Saltend plant recognised as a strategically important UK project

    A magnet metal processing facility at Saltend, led by rare earth specialist Pensana, has garnered attention as a significant component of the Mineral Security Partnership between the UK and the US. Paul Atherley, the Chair of Pensana, met with Business and Trade Minister Nusssrat Ghani prior to the inaugural Mineral Security Partnership talks with US Under Secretary Jose Fernandez. Pensana has been recognized as a partner in this new platform, with the participation of the UK, US, and international allies.

    During the meeting, Mr. Atherley emphasized the importance of Saltend’s development in supporting the UK’s automotive supply chain, which employs over 780,000 individuals, as it transitions to electric vehicles. The project seeks support from both the UK and US governments, and construction is already underway. The facility is expected to create 150 highly skilled jobs and will play a crucial role in domestic magnet metal provision for electric vehicle and wind turbine components.

    Mr. Atherley stated that by 2030, the UK aims to shift from being a major European producer of internal combustion engines to becoming a global leader in the production of electric drive units, manufacturing three million units annually, with a significant portion intended for export. However, the absence of a secure magnet metal supply chain poses a threat to this objective. Pensana is taking steps to establish an independent and sustainable rare earth supply chain, incorporating mid-stream processing to produce magnet metal within the UK. The Saltend project will create 450 jobs during the construction phase and sustain 150 high-value jobs during operation, with room for further expansion. The facility is designed to be flexible, capable of processing feedstock from the Longonjo project in Angola, as well as other rare earth mining projects.

    The Minister assured Pensana that the project holds strategic importance for the UK and expressed her commitment to raising support for the venture during discussions with Under Secretary Jose Fernandez as part of the Mineral Security Partnership talks held during the London Metal Exchange Week. The goal of the Mineral Security Partnership is to stimulate private sector investment and collaboration with key government partners, focusing on strategic mining, processing, and recycling opportunities that adhere to the highest environmental, social, and governance standards. This initiative particularly targets critical minerals essential for core technologies like electric vehicles and clean technologies.

    Pensana is at the forefront of the Humber Freeport initiative. This transatlantic endorsement follows another notable investment at Saltend, which was highlighted during UK Prime Minister Rishi Sunak’s trade visit to the US earlier this year. Meld Energy’s £180 million hydrogen production plans were announced during the visit, with strong support from Fortune 500 constituent World Fuel Services Corporation.

  • New Mineral Discovered in Gold Mine Named After Greek Scientist

    New Mineral Discovered in Gold Mine Named After Greek Scientist

    A new mineral, kanatzidisite, has been discovered in an abandoned gold mine in Hungary. It was named in honor of Greek scientist Mercouri Kanatzidis, an esteemed inorganic chemist at Northwestern University in Chicago. The mineral, classified as a chalcogenide, was found in the Nagybörzsöny deposit at Alsó-Rózsa, Hungary, during the summer and is now part of the collection at the Museo di Storia Naturale, Università di Firenze, Florence, Italy.

    The International Mineralogical Society (IMA) recently announced the naming of the mineral after Kanatzidis to recognize his significant contributions to chalcogenide chemistry. Kanatzidis expressed his deep honor at having a mineral named after him, symbolizing the remarkable diversity and wonders of the Earth’s geological treasures. While kanatzidisite is currently rare, he hopes that larger deposits will be discovered as geologists gain a better understanding of where to look.

    Chalcogenides are compounds that contain at least one chalcogen elemental ion and at least one metallic element. They differ from silica glass and are primarily composed of chalcogen element atoms such as sulfur, selenium, or tellurium. Chalcogenides exhibit a range of colors, from partially transparent to completely opaque, depending on their chemical composition.

    Kanatzidis’ research has made significant advancements in synthetic metal chalcogenide chemistry and the development of new functional chalcogenide materials. These materials have diverse applications, including solar cells, X-ray and gamma-ray detectors, topological quantum materials, and highly efficient thermoelectric materials.

    As the Charles E. and Emma H. Morrison Professor of Chemistry in the Weinberg College of Arts and Sciences at Northwestern University, Kanatzidis hopes that kanatzidisite will inspire future generations of scientists and explorers to delve deeper into the mysteries of nature and uncover more extraordinary minerals. He humorously remarks that his love for minerals has now led to a “rock-solid” legacy in the field of geology.

    Kanatzidis’ research spans various areas, including exploratory synthesis in chalcogenides and multianionic materials, thermoelectric applications, hard radiation detectors, and the discovery of hybrid perovskite materials for solar cells. His contributions have earned him the 2023 Centenary Prize for his pioneering work in the synthesis and development of novel semiconducting halide perovskites for solar energy conversion. Moreover, he has been elected as a member of the American Academy of Arts and Sciences.

    For the latest news from Greece and around the world, visit Greekreporter.com. Feel free to contact our newsroom to report updates or share your own stories, photos, and videos. Stay informed by following GR on Google News and subscribing to our daily email newsletter.

  • U.S, EU business groups push for steel deal, minerals drive at summit

    U.S, EU business groups push for steel deal, minerals drive at summit

    The largest business federations in the United States and the European Union have jointly called upon leaders convening for a summit on Friday to swiftly resolve an ongoing dispute regarding the metals tariffs imposed during the Trump administration. Additionally, they emphasized the need for increased cooperation in the realm of critical minerals, which are vital for facilitating the green transition.

    The U.S. Chamber of Commerce and BusinessEurope issued this call to action on Monday, in anticipation of President Joe Biden’s meeting with European Commission Chief Ursula von der Leyen and European Council President Charles Michel in Washington. The European Union aims to prevent the reinstatement of import tariffs on steel and aluminum, as imposed by former President Donald Trump, and to establish a mutually beneficial agreement that supports EU exporters of critical minerals to the United States.

    Highlighting their concerns, the two business groups underscored the risks posed by protectionist policies, citing anemic economic growth and misguided narratives surrounding industrial decline. They cautioned that such policies could hinder innovation and impede prosperity. Consequently, the groups urged officials from both the EU and the U.S. to reach a lasting agreement that prevents any reimplementation of metals tariffs by the U.S., while also addressing the challenges posed by global excess capacity and carbon emissions in metals production.

    Furthermore, the business federations stressed the importance of transatlantic collaboration with countries that possess significant reserves of critical minerals. This collaborative approach seeks to reduce reliance on any single country, particularly China, which currently holds a dominant position. In order to advance the green transition, the groups emphasized that global mining companies must substantially increase their production of critical minerals, such as lithium, cobalt, copper, nickel, and rare earths, by 500% over the next decade. This ambitious goal is crucial for driving the necessary advancements in sustainable technology.

  • Miners see value in EU focus on ESG but face red tape hurdles

    Miners see value in EU focus on ESG but face red tape hurdles

    Miners welcome the positive impact of Europe’s focus on environment, social and governance issues (ESG) although the process can be riddled with red tape causing delays in achieving their green ambitions, company executives said.

    Mining is crucial for the supply of critical raw materials including copper and aluminium needed for electric vehicles and renewable technologies such as solar power, but miners are also responsible for up to 7% of greenhouse-gas (GHG) global emissions as most in the sector race to hit net zero by 2050.

    Compliance with ESG standards are increasingly important to keep commitments from institutional investors such as pension funds and insurance firms and for bank loans.

    Christel Bories, CEO at miner Eramet told Reuters documentation proving the company’s ESG credentials for bank loans ran into thousands of pages and that the whole process from start to finish could take up to 18 months.

    “We have no problem supplying the evidence… but it does slow down the project,” Bories said.

    One initiative welcomed by metal producers is the EU’s Carbon Border Adjustment Mechanism (CBAM). From October 1, EU firms have to report the GHG embedded during production of imported volumes of some goods including iron and steel, aluminium and electricity.

    CO2 emission charges will not be imposed until 2026.

    “We like it because it gives us a level playing field with other countries,” said Boliden CEO Mikael Staffas, but he added there were issues.

    “One example is if you import copper, turn it into tube and export it, you should get some credit back. This will be an administrative nightmare,” Staffas said referring to the paperwork that would be required.

    Investors want to see mining companies account for and report their emissions consistently and mine in a socially responsible way.

    “There is a concern that there has been a proliferation (of standards) but let’s not forget a lot of these standards have evolved because things in the sector have not been so good in the past,” said Adam Matthews, chief responsible investment officer for the Church of England Pensions Board, which invests in mining companies.

    Boliden’s Staffas cited zero fatalities due to focus on ESG compared with roughly two per annum at some of the largest miners. “We are 15 years fatality free.”

    EU lawmakers are also pushing for far greater recycling of waste in a new law to ensure the bloc has raw materials such as lithium, nickel and cobalt required for its green transition, and traditional recycling companies and newcomers are investing in capacity to produce battery materials.

    Eramet’s joint venture with water company Suez to be located in France’s Dunkirk region is one example.

    The partners are aiming to build a plant to dismantle electric vehicle batteries, followed by a second unit to separate and refine metals for reuse with a low carbon hydrometallurgy process.

  • Fortescue opens UK tech innovation center

    Fortescue opens UK tech innovation center

    ASX-listed Fortescue has cut the ribbon on its $23-million technical innovation centre in the UK.

    The Kidlington facility will focus on the technical development, testing and prototype production of batteries and zero emission powertrains for a wide range of applications, including motorsports, mining haul trucks, and other off-road and automotive applications.

    The site will employ 300 highly skilled workers, with up to 50 more jobs to be created in the next year.

    The facility will exclusively develop and produce batteries for the first generation of Extreme H, a new motorsports series beginning in February 2025.

    Fortescue WAE is already the battery provider for the Extreme E Series, The Extreme H car will use a similar powertrain used in Extreme E. The chassis has been improved to address the safety requirements associated with the use of hydrogen. The key differentiating factor in Extreme H will be that a hydrogen fuel cell combined with a smaller battery will replace the larger battery as the principal means of on board energy storage (H2fuel/battery).

    “This new technical innovation centre in Kidlington will not only drive the leading edge of decarbonised motorsports, but also lead the way to decarbonising heavy industry as well,” Fortescue executive chairperson and founder Dr Andrew Forrest said.

    “Fortescue bought Britain’s best racing battery maker not only to help decarbonise our own operations, but to help other businesses to adopt zero-emission technologies as well, and cement UK as a green technology and manufacturing leader.”

    Among the first batteries produced at the Kidlington site, will be those used to power Fortescue’s prototype 240 t mining haul trucks in Australia.

    The battery system, which is currently being tested onsite in the Pilbara, is integral to Fortescue’s $6.2-billion decarbonisation strategy to help eliminate fossil fuels from its terrestrial iron-ore operations, which includes replacing its existing diesel-fuelled fleet with battery electric- and green hydrogen-powered haul trucks.

    Fortescue WAE CEO Judith Judson said the opening of the facility marked the latest milestone in the evolution of Fortescue WAE into a global zero-emission technology solutions and manufacturing company.

    “Fortescue and other companies need the battery and green technology solutions that will be manufactured here at Kidlington, to decarbonise their operations. The world can’t afford for businesses to wait, so we are showing them that moving to zero-emission solutions and away from fossil fuels is not only possible, but can be profitable as well.”

    “The knowledge we have learned from racing is applied to everything we do, including our mining haul truck battery systems and other electric powertrains. It is what sets Fortescue apart.”

    The Kidlington site is co-located on the Oxford Technology Park and will have the capacity to produce and test up to 500 prototype battery systems a year with a total production capacity of 50 MWh/y.

    The facility allows Fortescue to expand electrification capability to support the growth of the business and the drive for green tech and zero emissions.

  • Flooded and forgotten: How Europe’s disused coal mines are successfully being used to heat our homes

    Flooded and forgotten: How Europe’s disused coal mines are successfully being used to heat our homes

    An old coal mine has been providing an English town with green energy for the last six months.

    The ground-breaking project in Gateshead is using the warm water that has filled the tunnels to heat hundreds of homes and businesses in the former coalfield community.

    Hailed a success, the UK’s first large-scale network shows the huge potential to be found in the nation’s sprawling warren of old mining tunnels, which sit beneath roughly a quarter of homes.

    “What we have in Gateshead is a legacy from the days of the coal mines, which was dirty energy,” says John McElroy, cabinet member for the environment and transport at Gateshead Council. “Now we are leading the way in generating clean, green energy from those mines.”

    Following decades of disuse, Britain’s coal mines have gradually flooded. Warmed by the earth, this liquid offers one answer to our renewable energy needs.

    With an estimated 2 billion cubic metres of warm water – more than a quarter of the volume of Loch Ness – geologists believe that Britain’s mine shafts hold one of the biggest underused sources of clean energy.

    “Recovering heat from mine water below the ground within abandoned coal mines provides an exciting opportunity to generate a low carbon, secure supply of heat, benefitting people living or working in buildings on the coalfields,” says Gareth Farr, head of heat and by-product innovation at the Coal Authority.

    The authority owns and manages the disused coal-mining infrastructure on behalf of the UK government.

    “With many millions of people living upon abandoned coalfields in Great Britain, the potential for mine water heat could be significant.”

    Tapping into the heat from water in the mines has the added benefit of boosting the economies of some of the communities most badly hit by deep coal mining closures in the 1980s. So how does it work exactly, and where is it taking off?

    How can flooded mines help to heat homes?

    Mine water gets warmer the deeper it goes, as this interactive map of old coal mines from the UK Coal Authority shows. Temperatures typically range from 10 to 20C but can reach up to 45C at depths of 1km – such as the Yorkshire site.

    Left to mix with the subterranean rock, the water often contains toxic compounds. But as a thermal source it is a valuable resource that can be harnessed through drilling boreholes which bring it to the surface.

    The water is then directed through heat pumps and extractors which compress the liquid, raising it to a much higher temperature before distributing it through heating networks.

    Once its heat has been absorbed in surrounding buildings, the water can be poured back into the mine system where it will be warmed up again.

    Mine water heat also has the advantage of working all year round. Temperatures aren’t affected by the seasons, and the water can be used to cool homes as well as heat them.

    Which UK towns are tapping into the energy source?

    Once at the heart of the Industrial Revolution, north-east England is now leading the way on this alternative energy source.

    Gateshead Council’s mine water project launched in March 2023 and is now one of the largest in Europe. With government funding, it installed 5km of new heat network pipes, boreholes and a heat pump energy centre capable of producing 6 mega-watts of mine water heat.

    This now provides secure, low-carbon heating to 350 high rise homes, a college, art gallery, several office buildings and a large manufacturing site.

    The Coal Authority and partners have been researching the potential for recovering low-carbon heat from disused coal mining infrastructure for several years.

    The UK Geoenergy Observatory (UKGEOS) based in Glasgow and run by the British Geological Survey, is one of the key research stations for this exploratory field.

    After the busy mines of the Scottish city and nearby town of Rutherglen shut, natural floods filled them with water of about 12C. In summer 2021, a dozen boreholes drilled into the site and fitted with hundreds of sensors provided a clearer image of the network of flooded tunnels. They revealed how fast water flows among mines, how warm it is, how quickly it replenishes and reheats.

    “The data from these 12 boreholes in Glasgow will help scientists around the world understand the subsurface and geothermal energy better,” said UKGEOS’s Alan MacDonald.

    The Glasgow Observatory and another project in Cheshire are part of a £31 million (€37 million) investment by the Department for Business, Energy and Industrial Strategy (BEIS). The funds being devoted to this research show the increasing interest the government is taking in this striking form of geothermal energy.

    The European pioneers of geothermal energy

    By tapping into its history to create new geo-energy assets, the UK is following in the footsteps of other European countries.

    The world’s first mine water power station opened in the Dutch city of Heerlen in 2008. It is now connected to around 500 houses and commercial facilities – cutting the area’s carbon emissions from heating by almost two thirds.

    A similar project is underway in the rugged Asturias region of northern Spain, where flooded coal shafts are heating (and cooling) a hospital, university and numerous other buildings.

    “Geothermal energy has given a second life to our coal mines,” Asturias’s director of energy María Belarmina Díaz Aguado told the BBC.

    Countries repurposing their underground reserves are also looking further north, to Iceland, a pioneer of geothermal energy.

    But though the first mine water power station is on European ground, the technology was harnessed nearly two decades earlier in Springhill, Nova Scotia.

    Synonymous with mining disasters, the Canadian community started using the heat from its dormant coal mines in 1989. One packaging firm in the town now boasts a 100 per cent renewable system, all year round.

  • Construction of Poland’s first offshore wind farm set to begin

    Construction of Poland’s first offshore wind farm set to begin

    Orlen announced yesterday that it has secured all the requisite construction permits, contracted all key components and secured all necessary financing. It has also started the construction of a terminal in the port city of Świnoujście that will speed up the installation of offshore wind turbines.

    “Despite the formidable challenges posed by the pandemic, supply chain disruptions and military conflict across our eastern border, we have adhered to the ambitious timeline we set from the outset,” said Orlen’s CEO, Daniel Obajtek. His firm describes Baltic wind as “Central Europe’s largest green energy project”.

    The foundation laying for the Baltic Power project is scheduled for 2024. The wind farm will comprise of 76 250-metre-high turbines, each with a unit capacity of 15 MW. Total installed capacity will reach 1.2 GW in 2026.

    Last month, Baltic Power signed loan agreements for a total of around €4.4 billion (a figure higher than the €3.6 billion initially reported) with 25 Polish and international financial institutions.

    “This is the largest financing obtained for a single investment in Poland’s history and one of the largest transactions of its kind in the offshore area in Europe,” said Orlen.

    As part of its energy transition strategy, the company also announced last month a $1 billion (4.2 billion zloty) investment in carbon capture and storage on Norway’s continental shelf.

    Poland has one of Europe’s most polluting energy sectors. The country still relies on coal to produce around 70% of its electricity, by far the highest proportion in the EU.

    But the government, which has been friendly towards the politically important coal sector, this year set a new target for Poland to produce three quarters of its energy from renewables and nuclear by 2040. The plans include offshore wind power capacity of 5.9 GW by 2030 and 18 GW in 2040.

     

  • Europe starts the clock on greening Soviet-era heating grids

    Europe starts the clock on greening Soviet-era heating grids

    Heating grids are pipelines spanning cities, transporting hot water from power plants into homes. What originated from a Soviet fondness for centrally-planned solutions soon spread to Nordic countries after the 1970s oil crises.

    Today, 12% of the EU’s heat and hot water needs are serviced by district heating, with the percentage going up to 40% in countries like Poland.

    In Eastern EU countries, the water is heated chiefly by burning coal, but countries there will have to switch to greener alternatives in order to meet the EU’s climate neutrality goals.

    Can they meet the challenge?

    “Meeting the requirements in Poland will require, depending on the scenario, expenditures of more than €90 billion to decarbonise the district heating sector,” said Pawel Szczeszek, president of the Polish district heating company PTEZ and vice-president of the country’s electricity industry association PKEE.

    “We are concerned about the excessive burden the transformation costs will impose on ours users,” he told participants at a recent EURACTIV event.

    Especially challenging are cities like Warsaw, where a network of pipes 1,800 kilometres-long supplies 80% of homes with heat. A mere 7% of the energy used in Poland’s heating grids is green.

    The clock is already ticking for Poland and other Eastern EU counties where dirty fuels play a dominant role in district heating.

    “The Energy Efficiency Directive introduces several measures that are addressing the district heating sector and district cooling sector,” explained Madis Laaniste, policy officer for energy at the European Commission’s energy department.

    For instance, it introduces benchmarks district heating systems need to meet in order to be labelled as “efficient” – a crucial requirement to qualify for state support, he added.

    By 2028, heat grids must use a mix of 50% renewables, 50% waste, or 75% cogeneration heat from nearby industry and power stations in order to be labelled “efficient”. The requirements tighten gradually before district heating must be fully renewable or running on industry waste heat from 2050.

    The EU’s renewables directive adds to the pressure, with an indicative target of boosting renewables in district heating by more than 2% per year, while relying on biomass to replace fossil fuels will become more challenging due to tighter sustainability rules.

    “After 2030, there will be no support for the new investments using fossil fuels,” explained Laanise, adding that “after 2035, there will be no support for the systems that use only fossil fuels”.

    Moreover, the price of CO2 certificates under the EU’s emissions trading scheme (ETS) are expected to rise by 2040 – above €400 per tonne according to some projections – putting the Eastern European district heating industry under pressure to transform.

    But Poland’s district heating companies are not amused by the EU’s fuel mix requirements, saying it makes the gradual transformation of the grid more challenging.

    “We see that it’s impossible to divide, for example, the district heating systems in Warsaw, in Gdansk, in Krakow into smaller parts,” explained Dorota Jeziorowska, a director at PTEZ. “Until 2045, combined heat and power units will definitely be needed,” she added, saying state support will be essential to make the transformation happen.

    Radan Kanev, a conservative EU lawmaker from Bulgaria, argued that state support may not be enough

    “The transformation of such huge facilities is a very difficult task,” he told the event. “It is certainly expensive, but it is also a very serious engineering challenge without an obvious solution.”

    How, then, should district heating companies meet the time-pressure from Brussels while grappling with the engineering side of such a large-scale transformation?

    Julien Joubert, who works on transformation planning at Energy Cities, a European association of local authorities, offered a Central European vision to Eastern Europe: Vienna.

    Not unlike Poland and Bulgaria, Vienna burns fossil fuels, waste, and biomass to heat its millions of residents.

    “Now Vienna’s strategy is not to go to biomass but really develop geothermal energy and also recover the waste heat produced by industry,” he said at the Euractiv event. Munich had similar plans, Joubert added.

    From 2026, Vienna’s utility Wien Energie plans to serve 20,000 households with hot water from geothermal, a figure that will rise to 120,000 households by 2030 before the city’s heating grid becomes entirely climate neutral by 2040.

    It’s a future hard to imagine for Warsaw, however, where the utility in charge eyes coal-heated water well into the mid 2040s.

  • Eramet rues timid European banks, sees lithium plant costing $1.5 billion

    Eramet rues timid European banks, sees lithium plant costing $1.5 billion

    Eramet aims to start producing lithium in Argentina in the second quarter of next year under the first phase of its joint venture with steel giant Tsingshan, part of Eramet’s shift towards minerals needed for electric vehicle batteries.
    If the partners proceed with a second stage of the project, for which a decision is due by the end of this year, total investment is expected to reach about $1.5 billion, Eramet CEO Christel Bories told Reuters.

    This is lower than a $1.7 billion projection given by Tsingshan. It would double the estimated $735 million cost of the project’s first phase.

    Eramet will share costs with Tsingshan. It will also raise $400 million in a deal with miner Glencore to market lithium from the project’s first stage.

    Bories said Chinese investors are typically keen on mining projects internationally, but European banks are held back by onerous ESG requirements.

    “The worst is Europe. Banks ask thousands of pages of questions on ESG and due diligence,” she said in an interview before the LME Week gathering of the global metals industry.

    “We have no problem providing the evidence … but at the end of the day the whole process can take 18 months.”

    The European Union, which unveiled its Critical Raw Materials Act in March to try to secure supplies of critical raw materials for electric vehicles including lithium, cobalt and nickel, has urged European financiers to provide more funding to mineral suppliers.

    Eramet has previously criticised Europe for being slow to develop supply chains for critical minerals, saying that encouraged it to turn to Tsingshan first as a partner for a nickel mine in Indonesia and then to co-develop its lithium deposit in Argentina.

    The partners plan to reach output of 24,000 metric tons of lithium carbonate equivalent annually under the first phase of their Argentine project, with the potential second stage seeking to raise production to 75,000 tons.

    Eramet is also studying a plan with German chemical group BASF to produce battery-grade nickel and cobalt from ore extracted at Eramet’s Indonesian mine.

    The French group has pushed back a deadline for a decision to next year, with Bories saying it needed more time to find the right approach to meet Western standards.

  • Dismay after EU rejects ‘Green Pool’ for industrial energy users in Greece

    Dismay after EU rejects ‘Green Pool’ for industrial energy users in Greece

    The Green Pool scheme was initially floated by the Greek government in July 2022 as part of moves to lower the cost of electricity, which went through the roof last year after Russia invaded Ukraine.

    It was designed to help large industrial consumers of electricity like aluminium, steel, glass, or cement, to jointly sign up to corporate power purchasing agreements (PPAs) for renewable electricity, under the supervision of a public body acting as a single buyer and seller for participating companies.

    The scheme was aimed at mitigating the costs of re-shaping industrial production to match the variable nature of renewable electricity generation coming from wind and solar power installations – so-called firming or shaping costs.

    These costs were identified by the European Commission as a key obstacle preventing industrial consumers of electricity from signing up to Renewable Energy Power Purchase Agreements (PPAs), which Brussels is now promoting as part of its proposed electricity market reform.

    However, the scheme was turned down on Friday (6 October) by the European Commission’s competition directorate, according to Mytilineos, the Greek aluminium and energy company.

    The main reason put forward by the Commission, according to the Greek company, is that renewable PPAs could not be regarded as “decarbonisation” activities from electro-intensive industries because they are not part of so-called scope 1 emissions – those that producers are directly responsible for.

    The underlying rationale communicated to the Greek authorities, they added, was that the Commission does not want energy-intensive industries to benefit from subsidised electricity prices.

    The World Bank has identified aluminium as a “high-impact” and “cross-cutting” metal for green energy technologies ranging from electric vehicles to solar photovoltaics and geothermal.

    But in Europe, the industry has declined steadily over the years with production dropping from over 4.5 million metric tons 15 years ago to 2.7 million currently.

    Contacted by Euractiv, the European Commission did not return emails and phone calls asking for comment. The Greek permanent representation in Brussels also declined comment.

    Metal industry dismayed

    On the industry side, trade association Eurometaux reacted with dismay.

    “We’re surprised and disappointed that the European Commission rejected Greece’s ‘Green Pool’ proposal,” said Guy Thiran, the director general of Eurometaux, which represents non-ferrous metals producers and recyclers.

    For Thiran, the Greek scheme “ticked all the boxes” in terms of decarbonisation, competitiveness, and renewables deployment. “It was a crucial model that would also help the metal and power sector’s wider decarbonisation in other EU member states,” he said in emailed comments to Euractiv.

    According to him, the scheme would have been instrumental in keeping aluminium manufacturing within the EU’s border at a time when bauxite, alumina and aluminium were added to the EU’s list of critical raw materials.

    “Electricity-intensive metals producers are still on their knees from the energy crisis” caused by the war in Ukraine, Thiran said. “If Europe is serious about keeping its strategic metals production ‘Made in Europe’, we urgently need real solutions like the Green Pool,” he added.

    Paul Voss, director general of European Aluminium, a trade association, was equally upset.

    “We are deeply troubled and genuinely shocked by the rejection of this innovative initiative,” Voss told Euractiv in emailed comments.

    “Not only does this decision dangerously undermine the case for investment in solar and wind in Greece, it sends a clear message that energy-intensive industry, even when it’s powered by renewables, simply isn’t wanted in Europe anymore”.

    According to Mytilineos, the Green Pool would have led directly to 4 GW of new wind and solar investments in Greece while securing affordable electricity prices for energy-intensive industries.

    Moreover, the scheme could have easily been replicated in other countries, which is why it was supported by other EU trade associations like BusinessEurope and WindEurope.

    For the aluminium industry, the frustration is made even greater by all the recent EU talk about “strategic autonomy” in the raw materials and energy sector.

    In December last year, EU Commission President Ursula von der Leyen promised a “new assertive industrial policy” with streamlined EU state aid rules in response to the US massive green subsidy programme, the Inflation Reduction Act.

    Last month, the Commission chief announced that the European Green Deal was entering a new phase focused on industrial policy, starting with the launch of a series of Clean Transition Dialogues with individual sectors of industry.

    “The future of our cleantech industry has to be made in Europe,” von der Leyen declared in her annual state of the Union speech to the European Parliament.

    However, the Commission’s decision on the Green Pool scheme appears to contradict those declarations, according to European Aluminium.

    “How can we possibly reconcile this approach with all the recent discussion about strategic autonomy and sustainable industry?” Voss asked. “Outsourcing heavy industry to other, more carbon-intensive regions might look like an easy way to save energy and reduce emissions in Europe, but its ultimate impact will be to fatally compromise our economy, our security and our environment.”

    “This cannot be the way forward,” he added.