BDSV ties ferrous scrap to energy security

The Düsseldorf, Germany-based Federal Association of German Steel Recycling and Disposal Cos. (BDSV) says it has discussed with a member of the German Bundestag (parliament) the connection between energy security, the use of steel scrap and decarbonization.

BDSV Managing Director Thomas Junker says he commented to Bundestag member Sebastian Roloff that if Germany’s natural gas supply is cut or burdens are placed on distribution to industry, it “will have a massive economic impact.”

Junker and BDSV Public Affairs Officer Bernd Meyer and BDSV Vice President Stephan Karle also say the discussion focused on the CO₂ emissions savings potential of recycled raw materials (ferrous scrap) and how remuneration opportunities, subsidies and investment safeguards can help strengthen this aspect of the circular economy in Germany.

Karle indicated to the elected official there is not only a fair market between primary and secondary raw materials but that Europe must “position itself as a qualified processor of scrap for the world.” In particular, BDSV says, free world trade in steel scrap is essential for market pricing. “The processing of high-quality steel scrap is very time-consuming and costs a lot of money, which the steel manufacturers must be willing to pay,” Karle says.

In electric arc furnace (EAF) steel mills in Germany, one-third of the energy required comes from natural gas, says BDSV.

Junker says, “If we really want to operate in a climate-neutral manner, we need direct support for the use of scrap in the European Emissions Trading Act or a legally stipulated minimum use quota for steel scrap in steel production. Investments in future technologies of the circular economy and tax incentives for companies to make greater use of secondary raw materials are also indispensable. A first step in the right direction would be to introduce simplified and accelerated approval procedures for steel recycling companies.”