The projections of power and carbon prices for green steel production emerged from a report by the Scandinavian Institute for Public Policy, published on Tuesday, on behalf of a pilot project organised by Swedish steel producer LKAB.
Under current market conditions, the front-year Nordic power futures contract is hovering above EUR 41/MWh and Europe's benchmark carbon price is below EUR 66/t.
LKAB previously said it planned to complete the pilot by 2026, a project that would assess annual power consumption of 5 TWh.
The institute said it would make more financial sense for the company to focus on producing high quality steel pellets, based on global demand expectations.
