Austrian steelmaker Voestalpine is calling on the federal government to support energy-intensive industries by reinstating electricity price compensation, a measure widely used across the EU to maintain competitiveness.
In a letter to the government, Voestalpine stressed that 14 EU countries, including key competitors, already apply this mechanism, some extending it through 2030. Austria, however, has only offered a temporary, retroactive solution for 2022.
Voestalpine CEO Herbert Eibensteiner emphasized that energy cost relief is vital for securing the company’s 23,600 domestic jobs and future investments. He warned that the lack of support places Austria at a growing disadvantage, not only globally, but increasingly within Europe.
As Voestalpine shifts from blast furnaces to electric arc furnaces, which require significantly more electricity, the company faces rising direct and indirect power costs. It is currently investing EUR 1.5 bln (USD 1.67 bln) in this transformation as part of Austria’s largest climate protection program, greentec steel.
Despite this, Voestalpine has received less than EUR 100 mln (USD 111 mln) in support, while paying over EUR 1 bln (USD 1.11 bln) in carbon certificate costs over the past four years. That figure is expected to climb by another EUR 2 bln (USD 2.22 bln) by 2030, a burden the company describes as a “punitive tax”, since the funds are not earmarked for environmental purposes.
1 USD / 0.89 EUR