Sidenor 2021 Sustainability Report. Non-financial information statement

71 Efficiency Efficiency is the continuous search for improvement in processes, maintenance, technological developments and new designs, which leads to a reduction in emissions and consumption, generating a double economic impact. For this reason, it has to be the first priority in all decarbonisation areas. Renewable energies According to the “World Energy Transitions Outlook IRENA”, electricity generation is expected to triple by 2050, growing from 10% renewables in the current map to 90% renewables in 2050. This will enable the total decarbonisation of electrical consumption. Sidenor’s PPA already guarantees around 50% green electrical consumption as of 2022. Biofuels – green hydrogen The decarbonisation of combustion processes requires the use of emission-free fuels. With a view to the future, hydrogen is the main energy carrier for the decarbonisation of industrial combustion processes. Technological development is still at an early stage. Both availability and production cost will materialise in the medium-long term. Meanwhile, biofuels can be an alternative to reduce emissions in the short and medium term. Electrification The electrification alternative is an applicable decarbonisation model, as long as green energy is available. Some combustion processes can undergo electrification, such as the generation of steam in boilers. Alternative materials Consumptions of materials containing carbon must be replaced, as far as possible, by alternative by-products or materials with minimal or zero emissions. CO 2 capture / offset CO 2 capture must focus on emissions which cannot be addressed by means of any of the previous alternatives. In order to reach total decarbonisation, it will be necessary to apply emission capture or offset technologies. 221 kg CO 2 / tau 151 kg CO 2 / tau 49 kg CO 2 / tau COMBUSTION PROCESS Direct emissions ENERGY Indirect emissions Direct emissions PPA + renewables Efficiency Biofuels – Hydrogen Electrification Carbon-free alternative materials CO 2 capture Decarbonisation map