WASHINGTON (Scrap Monster):The American Iron and Steel Institute (AISI) commented that the 'Clean Power Plan' proposal announced by the US Environmental Protection Agency (EPA) could severely harm the international competitiveness of country's steel industry.
According to Thomas J. Gibson, President and CEO, AISI, electricity is one of the most significant cost drivers for production of steel. The availability of electricity is crucial to the international competitiveness of domestic steel industry. The proposed power plant regulations by the EPA may have adverse effect on the smooth and uninterrupted supply of electricity to industrial consumers. This in turn will affect the profitability of steel sector companies.
The Institute highlighted that leading iron and steel producing states in the country depend heavily on electricity produced from coal. The EPA regulation is likely to have its impact on coal-generated electricity, which in turn will have detrimental effect on steelmaking. AISI noted that the domestic steel industry has already reduced its energy intensity by 28% since 1990, while its green house gas (GHG) emissions have been reduced by 35% over the same period.
The proposed power plant proposal by the EPA intends to cut carbon pollution from existing power plants in order to protect public health, move the US toward a cleaner environment and fight climate change.