# Energy crisis an ‘existential threat’ to EU metal production -Eurometaux Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-08 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: EU Urged to Cut Power Costs to Save Metal Plants, Prevent Meta Description: Eurometaux warns of power crisis shutting down plants, urges EU to lower costs and increase support to prevent reliance on high carbon imports. URL: https://financedigest.com/energy-crisis-an-existential-threat-to-eu-metal-production-eurometauxhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-07t193523z2lynxmpei8603vrtroptp4ukraine-crisis-europe-power-1736815257830-compressed.jpg) By Pratima Desai LONDON (Reuters) – The European Union needs to reduce power costs in the region to prevent the permanent closure of metal producing plants in the region, which would increase reliance on imports with higher carbon footprints, industry association Eurometaux said. About 50% of EU aluminium and zinc production capacity “has already been forced offline due to the power crisis”, Eurometaux said in a letter to EU Commission President Ursula von der Leyen. EU [ministers meet](https://www.financedigest.com/germany-promises-g7-show-of-unity-against-russia-as-ministers-meet.html "Germany promises G7 show of unity against Russia as ministers meet") on Sept. 9 to discuss urgent measures to respond to a surge in gas and [power prices that is hammering Europe’s](https://www.financedigest.com/edf-edison-ansaldo-team-up-to-develop-nuclear-power-in-europe.html "EDF, Edison, Ansaldo team up to develop nuclear power in Europe") industry after Russia curbed gas deliveries to the bloc. Eurometaux wants the EU to [raise the 50 million](https://www.financedigest.com/ride-hailing-app-cabify-raises-110-million-for-expansion-in-latam-spain.html "Ride-hailing app Cabify raises 0 million for expansion in LatAm, Spain") euro threshold for the relief that EU countries can offer to struggling companies, provide support by capping taxes and surcharges on power and gas and create an emergency EU relief fund for energy intensive industries. Eurometaux said the [energy crisis](https://www.financedigest.com/europes-spend-on-energy-crisis-nears-800-billion-euros.html "Europe’s spend on energy crisis nears 800 billion euros") is an “existential threat to the future of Europe’s metal smelters. We call on EU and member state [leaders to take emergency](https://www.financedigest.com/g7-leaders-arranging-emergency-summit-after-poland-missile-strike-kyodo.html "G7 leaders arranging emergency summit after Poland missile strike – Kyodo") action to preserve their strategic electricity-intensive industries and prevent permanent job losses,” Eurometaux said, adding that the letter was signed by chief executives of 40 European companies. Eurometaux has 26 company members including Glencore, Aurbubis, Boliden and [Norsk Hydro](https://www.financedigest.com/norsk-hydro-keeps-some-aluminium-capacity-offline-due-to-weaker-demand.html "Norsk Hydro keeps some aluminium capacity offline due to weaker demand"). Zinc, aluminium and silicon [production cuts have already left consumers](https://www.financedigest.com/50-of-consumers-wont-spend-more-than-20-minutes-applying-for-financial-products-online.html "50% of consumers won’t spend more than 20 minutes applying for financial products online") in the Europe’s steel, auto and construction industries facing severe shortages, which are being offset by shipments from China and elsewhere. [“Chinese production is 2.5 times more carbon intensive than European](https://www.financedigest.com/chinese-carmakers-target-more-european-sales-with-five-star-evs.html "Chinese carmakers target more European sales with five-star EVs") zinc production; 2.8 more in the case of aluminium and 3.8 more for silicon,” Eurometaux said. We estimate that [Europe’s replacement imports of aluminium have already added 6-12 million tonnes of CO2 this year.”](https://www.financedigest.com/europe-facing-its-worst-drought-in-500-years-study.html "Europe facing its worst drought in 500 years – study") The industry body also wants the EU to ask member states to [provide financial](https://www.financedigest.com/mazars-to-acquire-financial-modelling-consultancy-and-training-provider-corality-financial-group.html "Mazars to acquire financial modelling consultancy and training provider, Corality Financial Group") help through the carbon compensation scheme. The scheme allows national governments to award compensation to energy intensive [industries to help them recoup some of the costs relating to high carbon prices that they need to pay due to the Emissions Trading](https://www.financedigest.com/eu-recovers-appetite-for-trade-in-green-industry-push.html "EU recovers appetite for trade in green industry push") System (ETS). Base metals, battery metals, and other metals are all needed in higher volumes for Europe’s grid infrastructure, [electric vehicles](https://www.financedigest.com/tax-credits-for-eu-electric-vehicles-to-dominate-mondays-trade-talks-with-u-s.html "Tax credits for EU electric vehicles to dominate Monday’s trade talks with U.S"), solar panels, wind turbines and hydrogen electrolysers,” the letter said. (Reporting by Pratima Desai; Editing by Nick Zieminski) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---