Metallurgy, the main tool of the industrial transition
Antoine Chacun, Managing director– ODDO BHF Metals.
“Europe must conduct precisely the reverse policy to help decarbonize global metal industries. We must reduce our metallurgical deficits and encourage local competitive production by ensuring that local processing industries get attractive prices for their raw materials”
“In the next 30 years, we will have extracted as much [metals] as since the start of humanity!” – Philippe Varin in his report on Securing the Supply of Mineral Raw Materials.
At several decisive moments in our history, metallurgy has played a critical role in developing human civilizations, including during the Bronze Age (-3000/-1200 BC) and the Iron Age (-1200/-550 BC). However, its role has been somewhat overlooked since we entered the fossil fuel era, powered by coal in the 19th century and, even more so, by oil and gas in the 20th and 21st centuries.
In the coming decades we will face a radical transformation of the foundation of the global energy system, encompassing buildings, transport and many other areas, particularly in industry. This is a considerable challenge, as the world’s current primary energy mix is 80% based on fossil fuels – i.e., oil & gas and coal.
This exit from fossil fuels can only happen with massive electrification. Electricity’s share in global primary energy consumption will have to increase from 20% to 53% by 2050.
