EUROFER, the European Steel Association, represents the steel industry at EU level. Founded in 1976 and based in Brussels, it brings together European steel producers and acts as a bridge between industry and policymakers.
Adolfo Aiello joined EUROFER in 2015. As Deputy Director General, he works at the intersection of policy and industry, helping shape the future of steel in Europe. We spoke with him to better understand the current priorities of the sector and how projects like HEPHAESTUS fit into this broader transformation.
What is the main priority of the steel industry at the moment?
The priority is clear. The European steel industry is fully focused on decarbonisation. Under the EU Climate Law, Europe has committed to reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, and to reaching climate neutrality by 2050. Steel plays a major role in this transition, as the sector accounts for about 6% of total EU CO₂ emissions.
To respond to the Climate law goals, the industry is already moving. More than 60 low-carbon projects are underway, targeting large emission reductions through hydrogen, electrification, and clean steelmaking technologies. These upgrades require fundamental changes and major investment decisions.
One of the key shifts is the move away from blast furnaces towards Electric Arc Furnaces (EAF). EAFs produce steel using electricity, from scrap or Direct Reduced Iron (DRI). DRI is iron made from ore without melting, using gas or hydrogen instead of coal. Compared to traditional blast furnace production, EAF route can reduce emissions by up to 58%, especially when powered by low-carbon electricity. Today, around 45% of steel in Europe is produced via EAF. This share is expected to grow significantly by 2030 as the transition accelerates.
Are current technologies enough to meet the 55% CO₂ reduction target by 2030?
From a technological perspective, yes. The technical solutions are available, and the European ecosystem is strong. European Steel Technology Platform, ESTEP, plays a key role in connecting research, industry, and policy to support innovation.
But technology is only part of the story. There is a real concern about the competitiveness of the European steel industry. In less than ten years, Europe has lost between 20 and 30 million tonnes of steel production capacity. In 2025, production dropped to the lowest level, even below the financial crisis and COVID periods. Of course, producing less steel also means emitting less CO₂, but this is not the kind of transition Europe is aiming for. This raises a difficult question: how to decarbonize the steel industry without losing the industry itself?
What is needed beyond technology to make steel decarbonisation work in practice?
Business case enablers. The technologies are largely ready, but the real challenge is upscaling them under the right conditions.
First, energy costs are critical. Decarbonised steel production relies heavily on electricity and hydrogen. At the same time, decarbonisation significantly increases operating costs, so energy needs to be affordable for companies to remain competitive. Second, fair competition needs to be restored through trade policy, so European producers are not disadvantaged. Third, and just as important, is the creation of a market for green steel. Today, the market does not naturally choose for green steel. Even if something is green, buyers still expect it to be cheap. A simple example is the automotive sector. People may choose an electric car for environmental reasons, but they rarely think about the steel used to produce it. As a result, there is no real value attached to green steel.
To change this situation, policymakers need to create preferences for “made in Europe” low-carbon steel in sectors like construction and mobility. In the automotive sector in particular, current legislation does not take into account the emissions linked to the materials used in vehicles. To address this gap, the European Commission has proposed an Automotive Package that would introduce incentives for car manufacturers to use low-carbon steel from 2035. The idea of this package is to create a lead market for green steel in Europe and support the transition in a realistic way, which is a step forward.
How does the valorisation of steelmaking residues in HEPHAESTUS fit into the bigger picture?
The main focus today is on scaling up large decarbonisation technologies at industrial level. As new technologies scale up, it also becomes essential to manage and valorise the by-products they generate. Projects like HEPHAESTUS play an important role here. By recovering metals from residues and bringing them back into the process, they help reduce costs and strengthen the overall business case of low-carbon steelmaking.
Comment from Liuba Lukina (HEPHAESTUS Communications Manager, Solvomet KU Leuven):
“This is particularly relevant as the share of EAF steelmaking increases in Europe, from around 45% today to an expected 57% by 2050. While EAF significantly reduces CO₂ emissions, it also produces large amounts of fine dust that are difficult to handle and harmful for the environment. In 2020, around 180 million tonnes of steel were produced in Europe, with about 60 million tonnes coming from EAF processes. This resulted in over one million tonnes of fine dust. Current recycling options remain limited, costly, and can still lead to emissions and landfill.
HEPHAESTUS addresses this challenge by transforming EAF by-products into valuable secondary raw materials. By recovering these resources, the project reduces waste, limits landfill, and supports circularity in the metallurgical industry. In addition, it explores innovative solutions such as catalytic conversion of CO₂ from process gases, contributing further to emission reduction efforts.”
How do you imagine the future of European steelmaking?
Steelmaking will definitely have a much lower environmental footprint than today. That transition is already underway and will continue. At the same time, steel will remain an innovative material. Not only in how it is produced, but also in how it is used. New applications, better performance, and a stronger role in the energy transition will appear.
Our ambition is that most of the steel used in Europe will also be produced in Europe. Today, there is excess capacity globally, which puts pressure on European producers. To make this happen, Europe needs not just to maintain but maximise its steel production today.
Moreover, European steelmaking will not follow a single model. Conditions differ across regions, so different technologies and different business models will coexist. But the overall vision for the future is low-carbon steel, produced competitively within Europe.
What is you personal connection with steel?
I studied EU affairs, so my connection to steel is closely linked to its role in building the Europe we know today. In 2026, we mark the 75th anniversary of the Treaty of Paris, signed in 1951, which established the European Coal and Steel Community. At the time, Europe was still recovering from the devastation of World War II. The idea of this Treaty was that by integrating coal and steel industries, countries would become less likely to go to war again. It was a vision based on peace and solidarity, bringing together Belgium, Germany, France, Italy, Luxembourg, and the Netherlands. Over time, this cooperation expanded far beyond coal and steel, eventually growing into the European Union we have today with 27 Member States.
So for me, steel is not just a high-tech material. It also has a strong social and historical meaning. That is what makes it so interesting today, as it becomes part of the transition towards a shared decarbonised future.
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