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Steel and Coal:
A New Perspective
European Research
European Research and
and Innovation
Innovation in
in Action
Action
EUR [number] EN
Research and EN
Innovation
EUROPEAN COMMISSION
Directorate-General for Research and Innovation
Directorate D — Industrial Technologies
Unit D.4 — Coal and Steel
Contact: Domenico Rossetti di Valdalbero, PhD
E-mail: Domenico.Rossetti-di-Valdalbero@ec.europa.eu
RTD-PUBLICATIONS@ec.europa.eu
European Commission
B-1049 Brussels
EUROPEAN COMMISSION
Steel and Coal:
A New perspective
European Research and Innovation in Action
Edited by Dr. Domenico Rossetti di Valdalbero
Directorate-General for Research and Innovation
2019 Research Fund for Coal and Steel EN
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LEGAL NOTICE
This document has been prepared for the European Commission. However, it reflects the views only of the
authors. The Commission cannot be held responsible for any use that may be made of the information
contained therein.
More information on the European Union is available on the internet (http://europa.eu).
Luxembourg: Publications Office of the European Union, 2019.
PDF ISBN 978-92-76-02103-2 doi: 10.2777/842798 KI-04-19-372-EN-N
© European Union, 2019.
Reproduction is authorised provided the source is acknowledged.
Cover image: ©Philippe SAMYN and PARTNERS, architects & engineers, #Image d’Avilés E13_101/E11_2648
Contents
FOREWORD .................................................................................................................. 6
AN HISTORICAL, VITAL INDUSTRY IN TRANSITION ........................................................... 7
Steel and coal: from the roots of EU integration towards a Clean Union ........................ 7
Why, What and How to build now? ......................................................................... 10
Carbon capture and storage is needed and is becoming cheaper ................................ 10
Steel 4.0 and forward-looking applications .............................................................. 11
European Research and Innovation in Action ........................................................... 13
STEEL AND COAL R&I ASSESSMENT ............................................................................... 15
Steel technological achievements ........................................................................... 16
Coal technological achievements ............................................................................ 17
Steel and coal in the next decade .......................................................................... 18
Innovation leakages vs. Open Europe ..................................................................... 19
STEEL AND COAL IN THE NEW ECONOMY ........................................................................ 21
Decarbonisation: Mission possible even for harder-to-abate sectors ........................... 21
Land-use rehabilitation in coal regions in transition .................................................. 24
March for a Clean Europe ...................................................................................... 26
AGENDA ..................................................................................................................... 27
LIST OF PARTICIPANTS ................................................................................................ 28
ACKNOWLEDGEMENTS ................................................................................................. 30
4
List of figures
Figure 1. Steel industry production sites in the EU ........................................................................ 8
Figure 2. Coal and lignite production in the EU and imports ........................................................... 9
Figure 3. Circular economy: Coal power plant and Carbon Capture and Utilisation .......................... 11
Figure 4. Digital Twin of a steel rebar........................................................................................ 12
Figure 5. Autonomous drone .................................................................................................... 12
Figure 6. ECOSLAG process diagram ......................................................................................... 12
Figure 7. Global emissions pathways, Gt CO2 /year .................................................................... 21
Figure 8. CO2 emissions reductions potential in the steel industry ................................................ 22
Figure 9. Transition pathway in Poland - Silesia .......................................................................... 24
List of tables
Table 1. Steel technological achievements ................................................................................. 16
Table 2. Coal technological achievements .................................................................................. 17
Table 3. Steel challenges and recommendations ......................................................................... 18
Table 4. Coal challenges and recommendations .......................................................................... 19
5
FOREWORD
The EU's foundations originate from the Schuman Declaration
and the European Coal and Steel Community (ECSC). The 1951
Paris Treaty has been the bedrock of peace, welfare and
prosperity on our continent through industrial development.
A strong industrial base is of key importance for Europe’s
competitiveness. Associated with its environment and climate
leadership, Europe plays a forward-looking role on the global
stage. As Commission Vice-President Frans Timmermans
recently said: ‘The world is in a flux and we are in the midst of
the fourth industrial revolution. Everything is changing for
everyone. The question is whether we are a victim of change,
or whether we will embrace and guide it’.
For all sons and daughters of the European integration, coal and steel have a particular resonance. We
are especially concerned about the challenges that these industries are facing in particular
overcapacity, unfair competition and decarbonisation. But we must modernise our economies, secure
our natural environment and improve the health and wellbeing of all our citizens.
The European Commission endorsed the global commitment to limit climate changes by setting
ambitious CO2 emission reduction targets. Supported by Research and Innovation, several European
policies; such as the Energy Union and the Circular Economy Package, are materialising these
endeavours. The new EU Research and Innovation programme, Horizon Europe, with a proposed €100
billion budget will be the biggest ever research funding programme running from 2021 to 2027 and
supporting strong Public-Private Partnerships. Complemented by the Research Fund for Coal and Steel
and the Innovation Fund, we are convinced that coal and steel sectors will become more sustainable in
Europe.
We can deliver on the energy and environment targets. However, no European company, region or
citizen should be left behind. Our aim is to have a ‘just transition’. This is true for coal and steel as
well as for other energy intensive sectors like cement, chemical, ceramic, paper and glass. A carbon
neutral Europe by 2050 requires maximising the technical potential, pushing for breakthrough
technologies, deploying renewable sources of energy and ensuring the large-scale electrification of the
energy system. This transition has a certain cost. We need to be ready for such a structural shift that
is based more on quality than quantity and on high-added value rather than mass products and
applications.
This publication sheds light on the technological achievements in the steel and coal sectors. Much has
been done but more is needed to improve industrial energy efficiency, ensure affordable energy prices
and develop new clean technologies and processes like carbon direct avoidance and smart carbon
usage and storage. Recovering, recycling and reusing energy, heat and material streams across
industrial sectors are part of the new economy.
A clean Europe can go hand in hand with increased prosperity. To succeed, the EU and its Member
States and public and private sectors must join their forces and lead the way in science, technology
and modern infrastructure.
Jean-Eric Paquet, Director-General for Research and Innovation
6
AN HISTORICAL, VITAL INDUSTRY IN TRANSITION
This report reflects the presentations and deliberations during the European conference entitled 'Steel
and Coal: a New Perspective', which took place in Brussels on 28 March 20191. Hosted by the
European Commission's Directorate-General for Research and Innovation (DG RTD), the event
gathered 100 stakeholders from across the EU, including senior representatives from the major steel
and coal companies, associations, research and academic organisations. The aim of the conference
was to explore the prospects of technological breakthroughs for steel and coal in a world in transition
faced with globalisation, decarbonisation and digitisation. It was also an opportunity to discuss with
stakeholders the preliminary results of the seven-Years Monitoring and Assessment of the Research
Fund for Coal and Steel (RFCS) programme. Finally, this conference explored the challenges for steel
and coal sectors in a circular and carbon constrained EU economy and in the EU transition to a circular
economy.
Steel and coal: from the roots of EU integration towards a Clean Union
In the aftermath of World War II, steel and coal were the olive branch to secure peace among
European countries. Thanks to the management of coal and steel under a European High Authority, a
political long lasting political project based on collaboration has been forged. Jean Monnet used to say
‘Nous ne coalisons pas des Etats. Nous unissons des hommes’ – ‘We are not forming coalitions of
States, we are uniting people’. Building on coal and steel, step-by-step, the ECSC became the
European Community, and then the European Union. After almost 70 years of European integration,
the world has changed rapidly and significantly with new global players, new technologies and new
challenges.
The conference was organised in three sessions (see the agenda at the end of the publication). The
first keynote speeches dealt with Steel and Coal in a forward-looking perspective. The speakers
addressed the themes of architecture, steel 4.0, energy, electric mobility, innovation, technology and
socio-economic challenges. The conference offered the opportunity to discuss with stakeholders and
scientists the preliminary results of the Expert Group on Monitoring and Assessment of RFCS, the
Research Fund for Coal and Steel. The last session of the conference explored the issues of steel in a
climate constraint-world and of coal regions in transition. Finally, the opportunities offered by RFCS,
Horizon 2020 and the upcoming Horizon Europe and Innovation Fund have been presented in the
conclusions.
Ms Signe Ratso, Deputy Director-General of the European Commission’s DG RTD, opened the
conference emphasising that European industry provides 36 million direct jobs2 and contributes to
high standards of living for EU citizens. Industry plays a key role in supporting Europe´s global
leadership and international stature.
Europe´s competitors are investing heavily in the upgrade of their industry. The productivity gap with
some countries is increasing and major economic players like China are competing with those
industrial sectors where the EU was leading for several decades.
Europe has obtained excellent research results in many technological areas, which have helped it
develop a smart, innovative and sustainable industry. Nevertheless, more is needed to turn research
into breakthrough innovation, creating new markets that drive jobs and growth and that deliver a
cleaner, healthier and more prosperous planet for the next generations. The uptake of technologies
must be accelerated and improved particularly among SMEs and traditional industries while
investments in new skills must increase.
For this reason, the Commission adopted the ambitious proposal for Horizon Europe – the Framework
Programme for Research and Innovation under the next long-term EU budget 2021-2027. Building on
the achievements and success of Horizon 2020, the Commission has proposed €100 Billion to keep the
EU at the forefront of global research and innovation. EU institutions have reached a partial political
agreement on Horizon Europe at the end of March 2019.
Directly related to steel and coal, Ms. Ratso mentioned that the Commission is exploring the possibility
to exploit part of the assets of the European Coal and Steel Community in liquidation to build a critical
mass for investment in breakthrough technologies in the steel industry and for coal regions in
transition. This will also complement the Research Fund for Coal and Steel.
1
European Conference ‘Steel and Coal: A New Perspective’, 28/3/2019.
2
Investing in a smart, innovative and sustainable Industry - A renewed EU Industrial Policy Strategy, European
Commission COM(2017)479.
7
Figure 1. Steel industry production sites in the EU
The difficulties faced by the EU steel and coal industry is facing cannot be ignored. They include
overcapacity, unfair competition, decarbonisation, and relatively low demand. The steel industry is
present in most Member States taking the form of primary steelmaking plants, its Electric Arc
Furnaces plants and plants that process steel (See Figure 1)3. The EU steel sector provides more than
300,000 direct jobs. In some regions of Europe, coal plays a very important role: more than 230,000
people are employed in the mining and in the coal and lignite-fired power plants.
The EU industry has demonstrated that it is able to evolve and to become more sophisticated.
However, all ideas require research and development – in addition to a greater investment in
innovation - before they can be proven and implemented commercially. Breakthrough technologies will
be fundamental for leading international competition and for reducing the impacts on climate change.
Promising breakthrough technologies such as hydrogen-based steelmaking or primary steel production
using electricity are starting to be demonstrated by the EU steel industry. Mass industrial
implementation of these technologies will require a large amount of affordable renewable energy.
Smart carbon usage also has significant potential from the industrial symbiosis perspective. The EU
already has some successful examples of the steel and chemical industries working together.
Ms. Ratso noted that coal supplies represent one third of worldwide energy. In Europe, the production
and consumption of coal has been steadily declining for years (See Figure 2)4. Today’s main challenge
is how to conciliate coal use with the climate targets agreed in Paris. To this end, the deployment of
3
Eurofer, European Steel in Figures, 2018.
4
Euracoal, Coal in Europe in 2017.
8
carbon capture and storage (CCS) is critical. Other advanced coal technologies could be implemented
such as underground coal gasification and coal to liquid or coal to chemical technology. These are
areas for innovation and demonstration.
But there are also other options for the future of coal such as ‘poly-generation’ or ‘multi-fuel plants’.
This would entail the simultaneous and flexible production of electricity, hydrogen, synthetic liquid
fuels, heat and/or chemicals. Also worth exploring is the alternative uses of coal, like coal-to-
fertilisers, coal-to-graphite, or coal-to-rare earths.
At EU-level, the ‘Platform on coal regions in transition’ has been providing opportunities for more than
a year for national, regional and local representatives to discuss how these regions can best
modernise their economies in line with the EU decarbonisation strategy. Key words in this context are
social fairness and ‘Just transition’, new skills and financing for the economy.
Figure 2. Coal and lignite production in the EU and imports
Whatever happens to the EU’s coal regions in the EU will be closely watched by China, India, the
United States and Canada, where coal communities are also challenged to re-think their future.
Europe aims to lead by example.
Highlighting the importance of creative minds, Ms Ratso introduced a famous architect of this century,
who was able to combine beauty, innovation and sustainability when designing the ‘Europa building’
that hosts the European Council. The reuse of windows frames from all Member States gives a
powerful message. It makes the window to the EU, represented by this building, a fitting symbol of
the EU’s diversity of cultures. The building’s beautiful lantern-shape also demonstrates the modern,
clean and efficient nature of steel.
9Why, What and How to build now?
Mr Philippe Samyn's keynote speech focused on the importance of recycling materials and reusing
what we have.
Before WW2, when something was destroyed (for example during the London bombings) people
looked at what could be done to reassemble and reuse what was left. Since WW2, when something is
destroyed, it has to be completely erased. In other words, a ‘tabula rasa culture’ has developed. Mr
Samyn argued that we must go back to salvaging what we have and producing less, despite the big
change in the types of building materials we use today.
Steel's advantages for many innovative designs and applications are clear. Steel is 100% demountable
and re-useable. On producing materials since WW2, Mr Samyn underlined that: ‘Before 1914, with a
few exceptions, constructions were made from earth, stone, baked earth bricks and tiles, wood,
vegetal and animal fibres. Since then, in industrialised countries, Portland cement, steel, plastic, glass
and aluminium gradually replaced these traditional materials. […]. The speeding up of the cement
production, which also occurred in the 1990s, correlates to the collapse of the USSR, the opening of
China, the emergence of globalisation and the establishment of a new global economic order. The
internet too became widely accessible in the 1990s, as the World Wide Web gradually developed.
Abundant energy suddenly doubled between 1990 and 1998 by an unbelievable financial abundance,
resulting straight from the value maximisation of future profits of listed companies around the globe
[…]. These funds are wasted in unbridled constructions. They are costly and fragile, wrapped in a
luxury that compares to the carelessness of that time. Urbanisation, cement production and general
material production is booming. In the meantime, issues related to energy resources and global
warming are arising. […]. The world production of primary energy follows the growth of the world
population and soars from 2000 on, maybe in order to address the needs of the data centres’ 5.
Mr Samyn questioned our way of life. Much of the energy produced goes to data centres, meaning
that this energy is used to communicate. Could we communicate less but better? Saving energy is
about changing the way we live.
Questioning the way we build, Mr Samyn made two key points:
For a global approach to architecture: The construction and the design of a building should
always be linked with the context in which it takes place. That is to say, the biological
diversity, lights, sounds, smells, etc.
For efficient and bright architecture: ‘Healthy architecture’ is useful for the future and
respectful of its environment. There is no need to use many luxurious materials (which require
more production) but to find efficient materials and bright techniques (e.g. punch steel).
Carbon capture and storage is needed and is becoming cheaper
Mr Tomasz Rogala, President of Polska Grupa Górnicza (PGG), Polish Mining Group and of Euracoal,
the European association for coal and lignite highlighted the importance of the coal industry’s value
chain and progress in clean coal technologies. He mentioned the triangle of values and challenges -
technology, society and economy - that PGG is confronted with in Poland.
In 2019, 200,000 jobs in Silesia are related to coal and these jobs pay 50% more than the average
salary in the region. €719 million of fiscal payments are transferred to the central government and
€181 million per year is spent on machines and equipment. Mr Rogala also underlined that climate and
energy has the potential to create more than 1 million additional jobs, mainly in construction,
agriculture and renewable energy, while the number of jobs in mining and extraction is expected to
fall.
Mr Rogala presented the new publication of the EU-supported CoalTech2051 project entitled ‘Changing
the face of coal: an outline strategic research agenda for future coal-related RTD in the European
Union’6.
He pointed out that carbon capture and storage (CCS) works, that it is necessary and that it will
become cheaper. Together with clean coal technologies, CCS will result in lower CO2 emissions. Based
on the experience gained from a full-scale project in Canada, he demonstrated that the specific costs
of second-generation CCS technologies should be 67% lower (per tonne of CO2). Mr Rogala pointed
5
E12-40 — WHAT TO BUILD WITH NOW? © Philippe Samyn and Partners.
6
CoalTech2051
10out that ‘the CCS installation at Boundary Dam coal power plant in Canada has been in operation since
2014 and captures circa one million tonnes of CO2 annually. CCS plants can capture up to 97% of the
CO2.'
Mr Rogala stressed that PGG is making progress with coal gasification as an alternative to
conventional combustion processes and is therefore supporting the EU's circular economy (see Figure
3 on Carbon Capture and Utilisation — CCU). Coal and municipal waste gasification can also provide a
solution for the waste management problem. In Germany, with 46% (LHV) electrical efficiency, the
750 MW Lünen power plant is one the most efficient coal-fired power plants in the world.
A short video was shown covering the signing of the European Coal and Steel Community treaty in
1951 through to the present and future of clean coal technologies7.
Figure 3. Circular economy: Coal power plant and Carbon Capture and Utilisation
Steel 4.0 and forward-looking applications
Ms Delphine Snaet presented the European Steel Technology Platform (ESTEP) vision on the future of
the steel sector.
She noted that modern society is a dynamic system. Democratic shifts, urbanisation, climate change,
environmental pollution, economic crises, digital revolution are just few of today's global megatrends.
Driven by economic factors and social awareness, the European steel industry is trying to establish a
coherent model that encompasses low-carbon, digitalisation, sustainable and circular economies.
Many research and innovation projects demonstrate the potential of newly developed steel grades and
the benefits of new steelmaking approaches.
The researchers of Tenova, for example, succeeded in reducing the operational costs of a basic
oxygen furnace using machine learning. By predicting the steel temperature at the end of the blow,
they achieved lower energy consumption leading to higher process efficiency.
Concerning the digitisation of steel production, the I2MSteel, SOPROD and CyberPOS RFCS projects
have successfully adapted the ‘digital twin’ technology to the requirements of the steel industry. They
have developed digital models that predict the properties of the product, while interacting with
machines and optimising the production path (see Figure 4).
7
Video clip ‘From ECSC to advanced coal technologies’.
11Figure 4. Digital Twin of a steel rebar
The use of autonomous drones (See Figure 5 from DromoSPlan project), carrying additional sensors
for gas detection and detection of dangerous elements, allows to reduce the maintenance and
inspection costs. A European consortium is designing a drone that can operate in the harsh
environment of a steel production plant (the DromoSPlan project).
Figure 5. Autonomous drone
The transition to a circular economy is another key trend. It is an essential part of ESTEP Strategic
Research Agenda. Examples of projects to recover steel industry by-products include: (i) an RFCS
project entitled ‘ECOSLAG’ (See Figure 6) which aims to find technical solutions for heat recovery from
steelmaking slags while producing a high quality slag product for external or internal utilisation; and
(ii) another RFCS project entitled ‘REUSTEEL’ to widely disseminate and valorise research results on
the reuse and recycling of by-products.
Figure 6. ECOSLAG process diagram
A number of projects are developing steel solutions for electro-mobility where the researchers face
different challenges. Solutions include weight, crash performance and energy absorption of the new
12materials, fire protection and sustainability of the designed product. The projects put these solutions
into practice by designing products with inherent fire protection, customised steel grades and flexible
but stress resistant joining. For example, TkSE is exploring solutions while working on large steel
battery housing for e-vehicles, which will allow a saving of more than 50% CO2 over the entire
lifecycle of the battery housing.
Last but not least, a group of projects is focusing on products for energy production from renewables.
Salzgitter’s project entitled 'SALCOS' explores the Carbon Direct Avoidance pathway. The project uses
already established (direct reduction with natural gas) and novel (hydrogen production and use)
technologies that aim to save up to 95% of CO2. The project unites GrInHy and GrInHy2.0
(demonstration of the first steam megawatt electrolyser), WindH2 (onsite production of hydrogen and
electricity generation from wind power) and MACOR (feasibility study on the adopted route). The
project's results will be presented at the Hannover Fair in April 2019.
Dillinger's researchers work on different innovative steel slabs for durable constructions, applicable in
renewable and transport infrastructures. They are investigating the applicability of thermomechanical
rolling. This is the super positioning of thermal and mechanical rolling treatment at the same time with
a result that cannot be obtained by a thermal or mechanical treatment alone.
ArcelorMittal is also working on these issues. It is developing new materials for thermal solar units and
photovoltaic solar racks. The new products comprise high temperature resistant metals to be used for
hot molten salts storage tanks, pipes with better corrosion resistance than oils, innovative solutions
for metallic reflectors able to replace glass-based heliostats and coated high-strength steels for light,
and reflectors supporting structures with improved atmospheric corrosion resistance.
Finally, Ms Snaet concluded that:
‒ technological pathways for carbon neutral steelmaking exist8;
‒ considering that steel is a ‘permanent’ material, there are many promising sustainable
solutions that use it and its by-products;
‒ the digitisation of the steel sector is a key enabler for the future steel factories;
‒ electric mobility is not affordable without new steel products; and
‒ innovative steel solutions could improve the performance and increase the durability of
renewable energy infrastructures.
European Research and Innovation in Action
The European Council agreed at its 21 March 2019 meeting that ‘in view of the importance of a
globally integrated, sustainable and competitive industrial base, the Commission is invited to present,
by the end of 2019, a long-term vision for the EU’s industrial future, with concrete measures to
implement it. It should address the challenges European industry faces, touching upon all relevant
policy areas (…). To remain globally competitive in key technologies and strategic value chains, the EU
needs to encourage more risk-taking, and step up investment in research and innovation. Measures
should be taken to further support the European Innovation Council and to facilitate the
implementation of Important Projects of Common European Interest, while ensuring a level playing
field, as well as a regulatory environment and state-aid framework that are conducive to innovation’.
The European Commission has taken a number of policy actions in this area in recent years, including:
(i) the action plan for a competitive and sustainable steel industry in Europe [COM2013)407]; (ii) the
Communication on ‘Steel: Preserving sustainable jobs and growth in Europe [COM(2016]155]; (iii) the
renewed EU industrial policy strategy [COM(2017) 479]; and (iv) the Coal Regions in Transition
Platform9. In addition, the Commission has several instruments that can be used to support the
adaptation of the industry. These include the European Fund for Strategic Investments that will soon
become InvestEU, and the European Structural and Investment Funds.
Notable research and innovation programmes include:
the EU R&I Framework Programme Horizon 2020 with the Public-Private Partnership ‘SPIRE’
(Sustainable Process Industry through Resource and Energy Efficiency) and the Societal
Challenge 3 on Energy and the Societal Challenge 5 on Resource efficiency; and
the Research Fund for Coal and Steel (RFCS).
8
European Commission, European Steel — The Wind of Change, Publications Office of the EU, 2018.
9
https://ec.europa.eu/energy/en/topics/oil-gas-and-coal/coal-regions-in-transition
13In 2021-2027, Horizon Europe will offer R&I opportunities for energy-intensive industries,
especially in its ‘Digital, Industry and Space’ and ‘Climate, Energy and Mobility’ clusters. The
Innovation Fund will also be important for scaling up innovative low-carbon technologies and
processes in energy-intensive industries, including products substituting carbon intensive ones,
carbon capture and utilisation (CCU), construction and operation of carbon capture and storage
(CCS), innovative renewable energy generation and energy storage.
Finally, in addition to RFCS, the Commission is exploring how the assets of the European Coal and
Steel Community in liquidation could support breakthrough technologies for low-carbon
steelmaking and accompany the restructuring of the coal regions in transition.
14STEEL AND COAL R&I ASSESSMENT
The second half of the conference took stock of the preliminary results of RFCS' seven-year monitoring
and assessment exercise. It highlighted a number of achievements in both the steel and coal sectors
thanks to RFCS research, innovation and demonstration projects.
Domenico Rossetti di Valdalbero, Deputy Head of DG RTD’s ‘Coal and Steel’ unit opened the session
stressing the importance of monitoring and assessing the impact of research and innovation. Such
monitoring and assessment is crucial to formulate solid recommendations for improvements in the
steel and coal sectors.
Council Decision 2008/376, the legal basis of the RFCS programme, requires that the research
programme undergo a monitoring and assessment exercise every seven years. The last monitoring
and assessment report covered the period 2003-2010. In 2018, a new monitoring and assessment
exercise was launched to produce a review of RFCS for 2011-2017 and a possible revision of the
multiannual technical guidelines in line with the Commission's better regulation guidelines
(effectiveness, efficiency, relevance, coherence and EU added value). The report also gives
recommendations and investigates ways to improve collaboration and the sequencing of funding,
notably between the RFCS and the Research and Innovation Framework Programmes (Horizon 2020
and Horizon Europe) and the Innovation Fund.
After explaining the RFCS monitoring and assessment process, Mr Rossetti introduced a panel of
experts chaired by Jean-Marc Steiler, one of the Steel Rapporteurs, Ms Valérie Prudor, the Coal
Rapporteur, Mr Nikolaos Koukouzas and Ms Elisabeth Clausen.
Mr Rossetti pointed out that this session was to present the preliminary results of the RFCS monitoring
and assessment report and to actively involve stakeholders by gathering their written comments, via a
form distributed earlier, on:
the preliminary results of the RFCS monitoring and assessment exercise (2011-2017) and
what is missing; and
future challenges for RFCS by 2030, emerging trends and how to get a greater impact
from R&I?
Mr Jean-Marc Steiler described the RFCS monitoring and assessment report's methodology stating that
out of 293 projects funded and 178 projects completed between 2011 and 2017, the report
qualitatively evaluated 60 projects based on the inputs received from the technical groups. It also
quantitatively assessed another 38 projects via questionnaires sent to the project coordinators.
Overall, around 33% of the projects funded in 2011-2017 have been monitored and assessed.
15Steel technological achievements
Mr Steiler and Ms. Prudor drew the attention of the public towards the most emblematic steel
achievements stemming not only from projects’ results achieved during 2011-2017, but also from
some projects launched prior to this period. He focused on the following fields:
New and improved steelmaking and finishing techniques
RFCS supported projects on highly efficient roll cooling and advanced process control, which allowed
for an optimal use of the assets. Moreover, advanced detection and on-line control systems
improved the management of quality.
Breakthrough CO2 reduction technologies in ironmaking
RFCS pioneered the development of Ultra Low CO2 Steelmaking (ULCOS) and of other promising
technologies as smelting reduction (HIsarna).
Contribution to Circular Economy and improvement of working conditions
RFCS pursued an enhanced use of recycled scrap and waste recycling, as re-use of process water and
waste energy. Moreover, the Programme contributed to the development of sensors, automation
and monitoring systems enhancing health and safety in the workplace. It also improved the air
quality inside the steelworks and safety in construction.
Environmental footprint
RFCS contributed to greening both the steelmaking processes and steel as a product by promoting
the use of alternative carbon sources in electric arc furnace and blast furnace, developing new eco-
friendly coatings and lightweight steel solutions.
Simulation, modelling and quality
RFCS contributed to the development of digital monitoring systems to improve process and product
quality, models of the risk of quality defects, along with predictive simulation on microstructures and
in continuous casting.
Steel product performance
New generations of steel combining strength and ductility, Advanced High Strength Steels (AHSS)
and quenching and partitioning (Q&P) steels have been created also thanks to RFCS support, which
improved steel grades and processing technologies.
New steel applications
High Performance Steel applications, new rules and technologies have been implemented. Practical
tools for testing have been designed with RFCS support.
Table 1. Steel technological achievements
16Coal technological achievements
Ms Elisabeth Clausen, Member of the Expert Group and Mr Nikolaos Koukouzas, Coal Rapporteur,
presented the audience with the most emblematic achievements in the coal sector during 2011-2017.
In particular, they presented achievements in:
Automation and digitalisation in coal mines
RFCS played a role in integrating ICT technologies in coal mines, e.g. new sensors technologies, mine
power engineering and real-time process reconciliation.
Health and safety
Working conditions in mines have improved thanks to the deployment of devices for dust control
and ventilation-on-demand, gas control and novel rescue devices developed with RFCS funding.
Protection of the environment
In accordance and collaboration with the Coal Regions in Transition initiative, mine water usage,
environmental monitoring and land reclamation and restoration highly improved.
Sustainable coal technologies
RFCS underpinned the development of technologies to produce sustainable coal by capturing CO2,
implementing emission reduction systems (smart control and sensors) and co-firing coal with solid
waste or biomass.
Improvement of the use of coal
Innovative and advanced uses of coal as optimised systems to prepare coking fuel blends, co-
processing and improvement on existing catalysts in coal liquefaction, development of novel porous
carbon materials have been supported by RFCS.
Alternative use of coal ensuring energy security of supply
RFCS co-funded projects on underground coal gasification and on production of syngas, simplified
gas cleaning and methanol or Fischer-Tropsch-fuels with the aim of securing the EU energy supply.
Table 2. Coal technological achievements
17Steel and coal in the next decade
The expert group members then turned to the future of the RFCS programme, focusing on the main
challenges that the coal and steel sectors need to tackle in the next decade. The experts also
presented the main recommendations to be raised in the monitoring and assessment report. Overall,
the challenges identified are common to both the steel and the coal industry (climate, digitalisation,
circular economy, health & safety), although certain challenges and all recommendations are intrinsic
to one of the two sectors.
Steel challenges and recommendations
Table 3. Steel challenges and recommendations
Mr Steiler presented the challenges and recommendations for the steel sector (as outlined in Table 3
above). He started by stressing the urgency of taking action on climate change and reducing the steel
industry’s carbon footprint. He said that the EU should lead the global effort in achieving net-zero
10
greenhouse gas emissions by 2050 in a cost-efficient manner and pointed out that energy efficiency
and cost-effectiveness should improve in the next decade thanks to sustainable and high performing
processes.
Although positive steps have been taken to achieve a circular economy, more needs to be done. To
fully close the loop, we need to make improvements in the use of secondary raw materials, waste and
scrap recycling.
After focusing on the environment in which the steel sector operates, Mr Steiler turned the spotlight
on the industry itself. In his view, for the EU steel industry to remain competitive on the global
market, it needs to devise new and improved solutions, such as advanced high-strength steels,
lightweight design and structural safety. Moreover, while new processing technologies and Industry
4.0 may challenge the steel sector, they also represent major opportunities for the sector to develop
further based on new emerging processing technologies, digitalisation, artificial intelligence,
instrumentation and modelling.
In his conclusion, the Chair of the high-level expert group focused on steel workers, highlighting the
need to fully involve them in the changes mentioned above, to continuously enable them to develop
new skills through lifelong learning and to improve their working conditions.
10
A Clean Planet for All — A European strategic long-term vision for a prosperous, modern, competitive and
climate neutral economy, European Commission, COM (2018) 733.
18This final challenge also applies to the coal sector, explained Ms Clausen (see Table 4 below).
Together with Mr Koukouzas, she added that the coal sector should also concentrate on redirecting
skills and that further efforts should be made to increase social acceptance and awareness of the
sector.
Coal challenges and recommendations
Table 4. Coal challenges and recommendations
In addition to the challenges identified for the next decade, all energy-intensive industries agree on
the need to further develop clean technologies to reduce their carbon footprint.
Specific to the coal sector is the push towards technology-intensive mining practice to increase mining
sustainability. Post-mining and land restoration continue to challenge the coal industry, which is
studying new methods to ensure the long-term stability and safety of closed mines. The sector is also
keen to explore alternative use of coal areas for renewables, while increasing the value of coal
products (e.g. gasification and integrated hydrogen production).
Finally, digitalisation and digital transformation challenge the coal industry and provide an opportunity
to improve the sector.
Innovation leakages vs. Open Europe
During the debate with the audience, stakeholders raised concerns that technologies developed with
EU funds may be used in non-EU countries. The Commission representative replied that the EU is
aware of potential ‘innovation leakages’ and is taking measures to limit it. Nevertheless, international
cooperation in research and innovation is important. The EU has been an open area, allowing
exchanges within its borders and beyond them.
On the future of the RFCS programme and its management in the coming years, another stakeholder
questioned the restructuring of the technical groups (TGs) which, according to the legal basis11, advise
the Commission on project monitoring and on defining the programme's priority objectives where
necessary. The TGs will start to be restructured as of 2020 for greater efficiency and effectiveness.
The steel TGs will be merged and reduced from nine to five TGs, whereas the coal TGs will be reduced
from three to two. This reorganisation was endorsed by Steel Advisory Group (SAG), Coal Advisory
Group (CAG) and Committee of Steel and Coal (COSCO) in 2018 and will be presented in the RFCS
Information Package 2019.
11
Council Decision 2008/376/EC, Article 24.
19In his concluding remarks, the Chair recalled that the RCFS programme has brought significant
benefits to the steel and coal sectors and to society. These benefits are maximised through links with
other programmes, notably the Framework Programme for research and innovation that addresses
climate change, energy efficiency, circular economy, digitalisation and health & safety issues.
The RFCS programme is unique in its ability to unite and gather a community that shares knowledge
and disseminates research results. As such, it accomplishes what the architect, Mr Samyn, expressed
in his opening speech: the need to create and share knowledge, not only to produce communication.
This was also one of the objectives of the European integration: uniting Persons, not forming coalitions
of States.
The RFCS programme will continue to achieve this goal, while guiding the coal community towards a
more sustainable future and keeping the steel industry at the forefront of research and innovation of
breakthrough technologies for ultra-low CO2 emissions.
Mr Rossetti thanked those stakeholders and scientists who commented on the preliminary results of
the seven-year RFCS monitoring and assessment and said that their input would be included in the
report to be made available in autumn 2019.
20STEEL AND COAL IN THE NEW ECONOMY
Decarbonisation: Mission possible even for harder-to-abate sectors
Mr Hervé Martin, Head of DG RTD’s Coal and Steel Unit moderated the conference's final session:
‘What’s next? Steel and coal in the new economy’.
Ms Faustine Delasalle spoke on behalf of the Energy Transitions Commission (ETC)12. She invited the
audience to take a step back from the very interesting granular research innovation projects covered
earlier and to look at the future of the steel industry from a broader, global perspective, focusing on
carbon emissions.
The latest IPCC report (2018) ‘Global warming of 1.5 °C’ informed the world of the major negative
impacts on people and the planet of a rise in global temperatures of 1.5 °C and the even more
dramatic consequences of a 2 °C rise which would lead to increased sea levels, more frequent extreme
weather events and forced migrations. IPCC recommends achieving net-zero CO2 emissions globally
by 2050 (Figure 7)13.
Figure 7. Global emissions pathways, Gt CO2 /year
Both the 2˚C and 1.5 °C scenarios present tremendous challenges for industries, be they the fossil
fuels industry or energy-intensive industries. This is an imperative, but also a major opportunity. The
new economic model will drive rapid technological innovation, increase resource productivity, create
jobs in new industries and deliver local environmental benefits, which increase quality of life.
To that end, the use of fossil fuels - coal in particular - needs to decrease globally. Any coal use that is
not combined with carbon capture should disappear from the system by mid-century.
Figure 7 presents a model trajectory for carbon emission to avoid drastic climate changes. There is a
very similar trajectory for fossil fuel use.
If no action is taken, between 2014 and 2050: (i) transport sector emissions could grow from 7.4 Gt
CO2/year 10.1 Gt CO2/year; (ii) power sector emissions could grow from 13.6 Gt CO2/year to 14.3 Gt
CO2/year; and (iii) iron and steel industry emissions could grow from 2.3Gt CO2/year (7% of a total
emission of 34.3 Gt CO2/year from the energy and industrial system) to 3.3Gt CO2/year (8% of a 39
Gt of CO2/year)14.
In a 2˚C scenario: (i) the power sector should eradicate all CO2 emissions; (ii) the transport sector
should reduce emissions to 4.3 Gt CO2/year; and (iii) iron and steel emissions should fall to 1.3 Gt
CO2/year, increasing their share to 20% of remaining energy and industrial emissions in 2050.
12
ETC is a coalition of global leaders in energy: energy producers, energy consumers, equipment suppliers,
investors, environmental NGOs and academics from the developed and the developing world. ETC explores
ways to comply with the Paris climate agreement to limit the rise in global temperature while enabling robust
economic development.
13
IPCC, Global Warming of 1.5˚C, 2018.
14
IEA, Energy Technology perspective, 2017.
21The ETC examined whether it would be possible to reach net-zero carbon emissions from heavy
industry (in particular steel, cement and chemicals) and heavy-duty transport (heavy-duty road
transport, shipping and aviation) labelled the ‘harder to-abate’ sectors, i.e. the hardest sectors to
decarbonise. The good news is that, after surveying technologies that are currently under
development or already exist, the ETC concluded that reaching net-zero CO2 emissions by mid-
century is technically and economically feasible. Technically, because as seen during the presentations
on RFCS achievements, there are innovative technologies in the pipeline. Economically, as ETC has
calculated that decarbonising all the harder-to-abate sectors by mid-century would cost considerably
less than 0.5% of global GDP.
The ETC expects annual global demand for steel to grow, but that rate of growth will vary significantly
from region to region. For example, it does not expect steel demand to grow substantially in Europe.
The ETC looked at all combinations of solutions to reach a steel net-zero carbon emission pathway and
identified three main routes:
reducing the demand for primary steel;
improving the energy efficiency;
deploying decarbonisation technologies.
For the analysis of the first route, global demand for steel is predicted to grow significantly assuming
that developing countries will seek to achieve the same level of prosperity as developed ones and will
therefore move towards a similar amount of steel per person (measured in tonnes). However,
according to data from various steel applications, most of the growth in global demand could be met
by scrap recycling (if recycling technologies improve), by reducing melting losses and by solving
contamination problems. According to the ETC, Europe's entire steel demand could be met through
scrap-based production.
Car sharing could also have a large impact, as the number of cars on the roads would go down and so
would the amount of steel used in the automotive sector.
Taken together, materials circulation (maximising recycling) and product circulation could lead to a
37% cut in the steel industry's global emissions by 2050 (see Figure 8)15.
Figure 8. CO2 emissions reductions potential in the steel industry
In terms of decarbonising the primary production process, four main pathways that apply to other
industrial sectors and transport have been identified. These are:
direct electrification of industrial processes, in particular the generation of high temperature
heat;
15
Material Economics analysis for the Energy Transitions Commission, 2018.
22 the use of biomass as an energy source for heat production, as a reduction agent in steel
production or as a feedstock in particular for plastics production;
carbon capture, combined with either use or underground storage;
using hydrogen as a heat source, or as a reduction agent in the case of steel and chemicals
production, with zero-carbon hydrogen derived from electrolysis or near-zero-carbon hydrogen
derived from steam methane reforming with carbon capture.
In each industrial sector, the most cost effective route to decarbonisation will likely vary by location,
depending on the local resources.
The ETC examined the determining factors leading one solution to dominate the market rather than
the others and concluded the key factor to be the price of zero-carbon electricity. In the ETC’s
assumption, Europe is likely to produce zero-carbon electricity for around $55/MWh by the 2030.
Therefore, its most competitive option would be carbon capture rather than hydrogen-based
production. China, with its large potential for exploiting renewable resources in its North-western
provinces, will probably be able to produce zero-carbon electricity for around $30/MWh. It therefore
might engage in hydrogen-based production and be able to produce zero-carbon steel at a lower price
than the European steel industry.
Decarbonisation technologies are more expensive than current technologies. Therefore, a combination
of market forces and policy-drivers will be needed to enable the switch. The cost of decarbonisation
may seem very high to the industry today, but the additional cost for the end-consumer will be
relatively low, given that steel accounts for only a small proportion of the overall cost of a car. This
opens up great opportunities, because one could imagine a ‘niche market’ starting to develop where
end-consumers and consumer-facing producers, knowing that the impact on the prices will be low,
decide to respectively buy and produce products with green steel, and are able to cover the additional
cost.
23Land-use rehabilitation in coal regions in transition
Mr Jan Bondaruk, Deputy Director for Environment at Glówny Instytut Górnictwa (GIG), painted a
more optimistic picture of the decarbonisation process, giving concrete examples from one of the coal
regions involved in the transformation.
He reported that in 2000 there were 42 operating coal mines in Silesia (Poland), which accounted for
10% of the GDP. In 2018, 20 coal mines were still operating (see Figure 9)16. As the ultimate goal for
all European regions is to achieve a zero emission economy by 2050, Mr Bondaruk considered that a
significant number of areas will be abandoned or degraded unless appropriate action is taken.
‘We are looking at this process not as a disaster but as a chance’, he said. According to him, post-
mining could be a key economic asset for the circular economy, for geothermal energy from mine
water, post-mining infrastructure and cultural and leisure services.
A particularly successful reconversion strategy is the transformation of Eminenzgrube (former coal
mine compounds) into the Silesia city centre in Katowice. This initiative demonstrates the importance
of land rehabilitation for the revitalisation of post-industrial areas. Mr Bondaruk believes that the
Silesia region is one of the best examples of the benefits of environmental economic transformation.
Researchers are already exploring the potential benefits of further developing this reconversion
strategy.
Figure 9. Transition pathway in Poland - Silesia
Mr Bondaruk also stressed that the European Research Fund for Coal and Steel has provided an
opportunity to accumulate knowledge and create new ideas and solutions for the post-mining sector.
Researchers in Silesia have started promoting the smart closure of mines to reuse these newly
abandoned areas in the most sustainable way, looking at different possible scenarios. One valuable
approach is ecosystem restoration. This has enormous potential for creating a new value chain, but as
it is not yet a mainstream practice there is no information available on the cost-effectiveness of land
rehabilitation. Despite this, there are many examples of efficient and cost-effective restoration
projects that respect the ecosystem and biodiversity and directly or indirectly benefit local authorities
and society.
16 GIG, Transition Pathway in Poland, 2019.
24A key aspect of ecosystem restoration is how to determine which land rehabilitation and ecological
restoration options will deliver the greatest return on investment considering maintenance costs.
The restoration planning and prioritisation framework developed by the researchers sets out five
steps:
mapping and assessing ecosystem services;
formulating alternative actions with stakeholder involvement;
assessing land rehabilitation techniques;
cost-benefit assessment;
conducting restoration strategies.
The researchers noted that as financing is still a critical consideration, the cost-benefit assessment is
the most crucial step and needs to be constantly reassessed. To assist this process, an information
platform called ‘Post-industrial and degraded areas’ (OPI-TPP) was launched in 2013 and is available
to public access for acquiring, processing and sharing data on all industrial areas that face a similar
challenge.
Mr Bondaruk concluded by affirming that post mining provides a number of positive outcomes. For
example: creating new jobs; generating measurable economic value; reducing the ‘consumption’ of
green spaces; new energy and heating schemes in urban areas near post-mining areas (e.g. closed
mines can either generate or accumulate energy); and greater collaboration between industry,
researchers and local authorities.
25March for a Clean Europe
Mr Peter Dröll, Director for Industrial Technologies in DG RTD, thanked the speakers and summarised
the main points, giving his personal views on the outcome of the conference.
The fact that every Friday students are marching in the streets calling for stronger action to protect
our planet should make us reflect and possibly join them, he said. Striving for a greater level of
ambition should be the way forward. He invited the coal sector to replicate in Europe the second-
generation carbon capture and storage installation at the Boundary Dam coal power plant in Canada,
which — referring to Mr Rogala’s (Euracoal) presentation — will be significantly cheaper than the
current carbon capture and storage plant.
Mr Dröll was pleased that the conference participants consider the ambitious 'decarbonisation by 2050'
target to be achievable. In this regard, he noted that the RFCS' significant portfolio of projects is
largely thanks to the effort and involvement of a wide range of stakeholders that are part of this
community.
Mr Dröll stressed that the EU should remain an industrial leader — a point also made by the European
Council in the conclusions of its 22 March 2019 meeting. A declining industry could push citizens to
more easily embrace the promises of populist politicians, putting the EU at risk of reversing its hard-
won integration. The time has therefore come to develop an assertive EU industrial policy underpinned
by green targets to save our planet: ‘If coal and steel sectors can take the leadership, it will be good
for us, for the planet and for the economy’.
The conference was also a good opportunity to take stock of the work carried by the high-level group
of experts for RFCS monitoring and assessment (2011-2017). Mr Dröll expressed his appreciation of
the group's work and the preliminary results that will be enriched by stakeholders' views.
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