country phone, welcome to our show, i'm seeing busy in berlin. recent days of seeing europe take new steps to the commercial production of green steel steel, that's essentially carbon neutral and production and transport. on friday, the auto supply companies that of germany struck a major deal with hydrogen producer h 2 to supply green still in the coming years. on the same day the steel maker doesn't cope rolled out. it's hydrogen production, arm caught new sarah to public investors who promptly put a 2 and a half 1000000000 euro evaluation on the company. other message seems to be clear. there's a lot of anticipation around green still, but the market is still young and there are plenty of questions before production begins on a commercial level. and we'll talk to an expert about that in just a moment. but 1st, here's an example of how green steel is produced. this steel mill is located right by the baltic sea in northern sweden. is the world's 1st successful pilot project for steel production using climate neutral hydrogen. the intermediate material for

steel production is stored in this home in the form of small pellets obtain from the raul product iron or a rotary cone is then used to refine the iron or rock the. the next step is to increase the iron contents of the pellets. this involves and being heated with hydrogen and then melted down. so what we're doing here is if testing of technology have anything to replace the blast furnace and the blast furnace uses cold. instead of what we do here with hydrogen to refine the lord into iron. we weren't allowed to fill in the process as it's an industry secret, but here's how it works. the 1st off is producing green hydrogen electricity from renewable sources like wind or solar power, is used to split water view,

electrolysis the and products oxygen in climate neutral hydrogen or h to this has been fed into the hybrid blast furnace and used to further increase the iron content of the pig iron pellets, the in a 2nd stage, liquid steel is been produced. any electric art furnace the the process is being held as a break through. they will usher in a new era in industrial history. you'll get a bit blind of through while we're working with this all the time. but when it take one step back to think about it is, it's quite the stone, this thing will tough being achieved here in just a couple of years. at the s s a b steel mill, they once completely replaced the old technology, which requires a lot of coal. everything will be powered with green electricity in the future. all

the furnaces and the new rolling build. the green steel is set to get the green lights in a couple of years. the new technology saves a lot of c o 2, and it's much more efficient. we say that from starting to model this graph where the sponge i run in an electric arc of them seems to have a fitness record that we could actually send for customers. it's roughly 3 hours right now, the overall manufacturing process still last several days. but with green steel also meaning lower costs. demand is sure to grow. nicole fox is a managing director and partner at boston consulting group. she joins me for more. nicole, welcome to the show. a wants to begin with, said f in this deal. is this the beginning of a long term trend that parts manufacturers, in this case for the automobile industry, are going to need to commit to green steel production in order to meet their own goals? yes, sure. and you know, the good thing is that the european steel industry is on its way to deliver um for

those parts, manufacturers. so all the players have concrete plans, how to keep carbonized. and if all announcements materialized, then roughly 40 percent of your pin, vast from his capacity will be converted. so replace brake reduced you or you know, as you hands were come online like to one, you quoted endodontics. you've written about this idea of a green steel premium. that is, that there is going to be much higher demand initially for green still than there will be production. even with that premium in place is a green steel. the production is going to be so much more expensive. how or firm's going to overcome that gap? are we seeing plans working with governments, for example, to overcome that gap? i mean, generally to say that in 2030 and that's the year we are talking about scale will be in generally more expensive regardless of color. i mean, the,

a green card which you're talking about, you said you would be about 70 percent or $70.00 more expensive in 2 days. graced you, however, graced you will be also more expensive, you know, given the carbon price, which will be charging 2030. so but however, to put this into perspective, yeah, if you just look at the standard car to g, carbonized, the value chain, it's about 2 percent more expensive. this would mean to just you and that is a new car. it's 250 to 300 zeros. and i mean, this is not so much less, you know, 1st assessments of the end consumer sent and then say there is to rally billing us to pay for net 0, carmen. so it just makes me hopeful that we work at the same time, aren't we hearing companies say that to make these long term investments and things like electrolyzer is that they're going to need some government help. and here in germany for example, i know there's been a lot of complaints that they haven't seen a clear roadmap towards that help. yeah,

we certainly, or just you to industry certainly needs help and just comes in different forms and shapes. or if you want to replace a ton of old capacity, new capacity, you need to spend, or roughly a 1000 bureaus per ton. so in how dusted come to the balance sheet of dest, you players do not have to string. so we need kept big support. but also what you are mentioning as you know, the infrastructure to renew of a c, h 2 component. so we need to, after set up, read easily that this get industry can use and then you set up stuff. this world can start buying, greenest you. yes. all right, those cap ex expenses, of course, meaning a capital expenditures i want to ask, do we even really have a definition for green still at this point, isn't that one of the, the tricky points. a yeah, your right, you know how is being defined? i mean to less carbon embedded into production degree known to material this. and i don't care so much about, you know, what shades of reading already having. so i would, or if you do read this sort of,

you, it's about 4 or less than $400.00. you know, grams per sewage. it per ton of steel embedded. and we don't have this yet. you need to have 4 green hydrogen power plant for that, but everything which is below 1500 takito grams of c o. 2 per ton starts getting green. i'm so this is the trajectory, but we need, you know, to come close to around 400 kilograms. and briefly do companies even have the means to track those carbon emissions across their entire value chains? well, it is much easier for us to start it and made announcements as they can. so you need to calculate upfront our carbon footprint, ideally real time, nothing average over a year. and only if you have this as a prerequisite. then of course, you can achieve to premium, we talked earlier. all right, nicole fucked as a managing director and partner a boston consulting group, specializing in metals. thank you very much. thanks for letting me let's take

a look now at some of the other global business stores making headlines. chinese produce surprises dropped in june at the fastest pace in 7 years. the index reflect surprises, the factories charged wholesalers. it fell by 5.4 percent from last year that weak domestic demand change. consumers are wary of spending on big ticket items such as cars is your opinion. and new zealand signed a free trade deal on sunday, following 4 years of negotiations. bilateral trade in goods was worth over 9000000000 euros in 2022. and both parties expected will increase by 30 percent within a decade due to the use already new zealand. 3rd largest trading partner exporting a particular wine fruit and meat to europe. west african heads of state have elected nigerians, new president, bola ok med tina to new booth to lead the economic community of west african states or echo was to do both set and security and terrorism were the biggest threats the

regions development was, was founded in 1975, the aims to promote economic cooperation among its 15 member states. egypt inflation has sorts of an all time high of 36.8 percent of the country grapples with an economic crisis. egypt and pound, his wife had lost half its value against us dollars since early last year. and that's left families struggling to cope in the import dependent country. it's the latest moved by the taliban to repress african women as of next month. all beauty salons in the country have to be shuddered. the shops were off the last refuge for women who were already banned from schools, most jobs, and even public spaces. and for some women, the new band takes away their very livelihoods, a business, a strong at this beauty paula in cowboy, for now like thousands in the city. the salon is one of the last remaining places where women can gather, chat and gossip,

and even bring some color to that daily lives outside these walls. there's not much to do for them. the ultra religious totally bind regime has banned women from nearly all parts of life and drops, leaving many with few options to provide for the families. i've been working here for a year now. and the tyler bond has issued an order say they want to close the beauty salons before i say to them, please don't do this. we work here to earn some more for money. schools are ready, but on for women. now the silence will be 2 dozen women have the right to live in society and beauty potter's mushroom to trust. couple with and other ask and cities and the 20 years that us led forces occupied the country to a couple of chamber of commerce estimates that more than 50000 ask and women work into sector, the spokesman for the totally bonds, ministry for the promotion of virtue and prevention of vice gave no reason for the

order to close all stores, but the policy fits the groups general ideology. likely a factor in the beauty pablo band. the fact that many women even own their businesses, i laughed as of that. i'm sorry, i haven't invested $7000.00 here. all the savings i had. yes. no, i'm worried and i don't know what to do because i'm sure there is no one here to buy the equipment. when the beauty parlors shots, i don't want them on the go to school based on the testing how to do that. so i haven't done anything contrary to islamic teaching, and i'll accept any rules from natal about, but i don't want to coast myself a long shot. so united nations assistance mission enough guy has done, has appealed to authorities to revoke the salon order was limited hope of success. and that's our show. you can find out more about these and other stories online at g, w dot com slash business. we're also on youtube under the to the the news channel.

i'm assuming there's a blend. thanks for watching the

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