The European Coal and Steel Community treaty expired in 2002 but its financial assets, built up over 50 years, were transferred to a fund, the Research Fund for Coal and Steel (RFCS), to finance research and innovation projects relevant to the two sectors. Independent experts from the coal and steel sectors considered projects funded by RFCS between 2003 and 2010, analyzing in depth 23 projects where quantifiable commercial benefits were assessed. The main benefits reported by the beneficiaries of the RFCS projects were cost reductions, increased productivity, energy saving, new applications, new solutions, and new market share. The cumulative quantified benefit they declared amounted to about €100 million/year for RFCS funding of about €30 million.
The experts also estimated what the overall commercial return of RFCS funding would be if the same impact achieved in the 23 projects were extended across the entire European coal and steel sectors. The result: an estimated overall commercial return close to €700 million per year compared with average annual RFCS funding of €55 million.
Forty percent of world electricity generation derives from coal, which remains the main energy source for some EU countries.
According to the report, “Research Fund for Coal and Steel,” the European Union (EU) is the second largest producer of steel in the world, accounting for 11% of global output. But Europe’s producers are facing increasing global competition. Research is therefore essential for EU industry to remain competitive, according to the report.
