The German Steel Federation (WV Stahl) has backed plans for a strategic natural gas reserve but warned that financing it through a new levy would add costs for energy-intensive businesses. The industry is already struggling with high energy prices and fears losing competitiveness.
On November 11, the German government approved a draft law to establish a reserve capable of supplying the country for 30 days in the event of a complete interruption of gas deliveries. The measure is intended to improve preparedness for emergencies, including sabotage and targeted attacks on energy infrastructure. The reserve is designed to address physical shortages, not to curb price rises.
WV Stahl chief executive Kerstin Maria Rippel said the sharp rise in gas prices amid the conflict in the Middle East was putting significant pressure on Germany’s steel industry. She also voiced concern about gas storage levels, saying steelmakers need reliable, predictable supplies both for current production and for the transition to climate-neutral steel.
Natural gas remains important for steelmaking and serves as a transitional energy source as the industry decarbonises, Rippel said. The federation argued that new charges on industrial gas and electricity consumption would be particularly unwelcome amid the current surge in energy prices.
WV Stahl welcomed the government’s readiness to consider targeted relief for the most energy-intensive companies and discuss the issue with the European Commission. It urged the government to use all available measures to reduce industry’s energy costs while ensuring secure gas supplies.
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