Salzgitter AG: On the way to green steel by 2033!

Salzgitter AG: On the way to green steel by 2033!

The issue surrounding steel production in Germany is becoming more and more pressing. Salzgitter AG is a pioneer here and plans to push ahead with the switch to green steel with full vigor. Board member Gunnar Groebler reported that the construction of new facilities is making good progress and that production in Salzgitter is targeted for the first half of 2027. In a world where climate neutrality and technology must go hand in hand, this is an important step. The plans stipulate that Salzgitter AG will produce steel that is 95 percent CO2-free by 2033, depending on the appropriate infrastructure and economic conditions. For this purpose, green hydrogen is used, which is obtained from water using wind and solar energy, as taz reports.

A striking point in this project is the planned production line, which will eventually use “green” hydrogen. This technology is supported by the WindH2 project as well as many partners, including Salzgitter Flachstahl and Sunfire, which are involved in the GrInHy2.0 project. This lighthouse project aims to further develop electrolysis technologies worldwide and significantly increase the efficiency of hydrogen production. The high-temperature electrolyzer used in this project operates at an operating temperature of 850 °C and achieves an electrical efficiency of 84%el, LHV with an energy requirement of approximately 39.7 kWh/kg H2, as Circular Technology highlights.

The pressure on the industry

The steel and iron industry in particular, which contributes significantly to greenhouse gas emissions, is facing enormous pressure. Around 20 percent of greenhouse gas emissions in Germany come from industry, with steel production alone causing over 200 million tons of CO₂ equivalents annually. However, there is hope: companies like Thyssenkrupp are already on track to use hydrogen instead of coal in their blast furnaces, which would enable massive savings in CO₂ emissions, according to BDEW.

Salzgitter AG is also supported in Lower Saxony by funding amounting to almost one billion euros, which makes the path to green steel production easier. A further 1.4 billion euros come from the company's own coffers. In this context, the need for green hydrogen is an important point: Overall, Salzgitter AG will be at least partially dependent on supplied hydrogen. Current studies show that sufficient quantities could be guaranteed from potential suppliers.

An uncertain future

But there are also uncertainties. For the time being, ArcelorMittal is not planning climate-neutral steel production in its Bremen and Eisenhüttenstadt plants and is foregoing subsidies amounting to 1.3 billion euros. The future of Thyssenkrupp's blast furnaces also remains uncertain. For the success of climate-neutral steel production in Germany, competitive industrial electricity prices and the introduction of protective tariffs against cheap steel from China must also be taken into account. These measures could significantly improve the conditions for successful green steel production.

The next few years will play a crucial role in the race to decarbonize the steel industry. The industrial-heavy companies that make the transition to renewable technologies will have a decisive advantage in the new climate world. In this sense, a look at developments in Salzgitter and beyond remains essential.