EU urged to unlock ship scrap to fuel green steel transition

A new report calls on the European Union to harness the untapped resource of scrap steel from end-of-life ships to decarbonise the continent’s steel industry.

The report comes from NGO Shipbreaking Platform, climate policy thinktank Sandbag and researchers at the University of Tuscia. They argue that sustainably recycling European vessels could deliver significant emission cuts, strengthen industrial resilience and drive a more circular economy.

Transforming production towards electric arc furnace (EAF) steelmaking is seen as critical to meeting EU climate targets. But EAFs need a steady supply of high-quality scrap, something offered by ships whose steel is known for its uniform quality and rigorous certification standards. For that reason, the report identifies end-of-life vessels as a strategic source.

Lower standards

Currently, however, just 1% of European-owned ships are recycled in the EU, with most dismantling outsourced to Asian yards with lower labour and environmental standards. According to the report, 70–95% of a ship’s weight can be recovered as scrap and recycling that steel could cut emissions by up to 80% compared with producing virgin steel, while also using 40% less energy and water.

Forecasts suggest ship demolitions in Europe could climb to 12 million tonnes of steel annually in the next decade, enough to satisfy up to 20% of domestic demand for scrap.

The groups call on Brussels to improve traceability and documentation of ship materials, close loopholes in existing regulations and explicitly support sustainable ship recycling through forthcoming legislation such as the Circular Economy Act and Industrial Accelerators Act.

They warn that current regulatory gaps enable owners to circumvent rules and scrap vessels cheaply overseas.

Innovations

The study also highlights emerging innovations in digital material tracing, ship life-extension and reuse of steel plates in construction, led by initiatives such as the Horizon CirclesOfLife project, the Netherlands Organisation for Applied Scientific Research, and start-up Nordic Circles.

‘Europe’s shipping sector is sitting on a massive resource of high-quality steel that is currently being processed under unsafe conditions abroad at end-of-life,’ says Benedetta Mantoan, policy officer at Shipbreaking Platform.

‘Only by enhancing traceability and documentation will the seamless integration of ship scrap into Europe’s industries … be possible and significantly boost both economic and environmental benefits, while optimising recovery rates.’