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ENERGY

Minister: ban biofuel, it boosts famine

Biofuel containing corn should be banned from German petrol pumps, a minister has demanded, as droughts and a dramatic rise in food prices mean more of the world population is going hungry.

Minister: ban biofuel, it boosts famine
Photo: DPA

“Rising food prices mean that biofuel can contribute to increased world hunger. That’s why we need to suspend E10,” Development Minister Dirk Niebel told the ntv television station on Wednesday.

Niebel’s demand for an immediate stop to the sale of E10 biofuel at German petrol stations has been welcomed by German aid organisations.

E10 – which was introduced last year and has in any case proved unpopular among German drivers – contains 10 percent bioethanol produced from corn crops which could otherwise be used to make foodstuffs.

It was promoted as contributing to reduction of carbon dioxide emissions, as well as the 10 percent being renewable rather than fossil fuel.

“It’s unjust and irresponsible that people have to starve so that we can fill up our cars with an apparently clean conscience,” Rainer Lang, spokesman for the “Brot für die Welt” protestant aid organisation told the Westdeutsche Zeitung on Wednesday.

The German World Hunger Association also welcomed Niebel’s suggestion that food production should be the priority in times of drought and famine and agreed that growing corn for biofuel was inappropriate given the dramatic rise in food prices.

“We need to consider in the cabinet how we can solve the conflict between the pump and the plate,” said Niebel.

The price of corn is currently rocketing as the worst drought for more than 50 years hits the USA. According to the UN, one in seven people on the planet – or 925 million – do not get enough to eat.

Meanwhile, the German biofuel industry has denied it exacerbates world hunger, wrote Die Zeit newspaper on Thursday.

“Only 4 percent of the German corn harvest went on bioethanol production last year,” managing director of the German Biofuel Industry Association (VDB) Elmar Baumann told the paper. A ban on E10 would do nothing to help the hungry in developing countries, he added.

DAPD/The Local/jlb

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ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

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The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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