Poland Green Steel Production Plant Infrastructure Development Feasibility Study with Industrial Decarbonization Forecast

Executive Viability Abstract

This feasibility study evaluates the development of a Green Steel production facility in Poland, transitioning from traditional Blast Furnace-Basic Oxygen Furnace (BF-BOF) to Hydrogen-based Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF) technology. The project aligns with Poland's industrial decarbonization goals and the EU's Carbon Border Adjustment Mechanism (CBAM), leveraging the growing renewable energy sector in the Baltic region.

## Market Analysis Poland is the second-largest steel consumer in Central Europe. The demand for 'Green Steel' is driven by the automotive and renewable energy sectors seeking to lower Scope 3 emissions. Current market trends indicate a 15-20% price premium for low-carbon steel. Competitive advantages include Poland's strategic location for exports and emerging offshore wind capacity in the Baltic Sea. ## Technical Feasibility The plant will utilize a 2.5 million tonne per annum (mtpa) DRI plant capable of running on 100% Green Hydrogen. Initial phases will use a natural gas-hydrogen blend (H2-ready). Integration with EAF technology will reduce CO2 emissions by up to 95%. Key infrastructure includes a dedicated 400kV grid connection and a hydrogen pipeline link to future North-Silesian hubs. ## Financial Projections Total CAPEX is estimated at €2.8 Billion. Revenue models are based on an average green steel price of €850/tonne. Significant savings are projected through the avoidance of EU ETS carbon allowances, which are forecasted to exceed €100/tonne by 2030. ## Risk Assessment Primary risks include the volatility of green hydrogen prices and the pace of the Polish power grid's decarbonization. Mitigation strategies involve long-term Power Purchase Agreements (PPAs) with offshore wind developers and securing EU Innovation Fund grants.