Energy accounts for 40% of the price of steel

Omissions

• The claim presents 40% as a universal figure without distinguishing between production routes. For traditional blast furnace steelmaking, energy costs are typically 20–30%; the 40% figure is cited in industry sources as an upper bound ('up to 40%') rather than an industry-wide average.
• No primary official source (Eurostat, IEA, OECD) was found confirming the 40% figure; the available sources are secondary industry and research publications.
• The MEP does not specify whether this refers to European steel production specifically or global averages, and does not cite any source.
• The claim omits that energy's share of steel costs fluctuates substantially with energy prices: it spiked during the 2022–2023 European energy crisis and has moderated since.

Sources

• SecondarySprott InsightsWith energy costs comprising up to 40% of steel production, green steel's local cost competitiveness is already emerging, and economies of scale are expected to further reduce costs.
• SecondaryRhodium GroupEnergy costs account for about 40% of the levelized cost of hydrogen DRI, and the economic feasibility is heavily driven by the availability of low-cost renewable electricity.