【SMM Steel】EU CBAM Deadline Spurs Wave of Green-Hydrogen DRI Steel Projects Ahead of 2026 Launch

Published: Jan 12, 2026 18:13 (GMT+8)

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【SMM Steel】The European Union's Carbon Border Adjustment Mechanism entered its full implementation phase on January 1, 2026, imposing carbon costs on imports of high-emission products such as cement, steel, and aluminum. For Europe's steel industry, 2026 is seen as a pivotal year as producers accelerate decarbonization investments to remain competitive in a carbon-priced market. Currently, several major projects centered on low-emission direct reduced iron technology are advancing across the region. This route avoids the use of coking coal and relies instead on green hydrogen or alternative low-carbon reductants. Sweden's GreenIron is preparing to start up a small-scale green-hydrogen DRI facility, while Stegra targets production in 2026 with a 2.1 million-ton per year DRI plant. Spain's Hydnum Steel, Germany's thyssenkrupp and Salzgitter, and Tata Steel Netherlands are also progressing large-scale DRI-based green steel projects, with start-ups scheduled from 2026 to the mid-2030s.

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