The plant, which is being built in partnership with metallurgical equipment manufacturer Tenova, will be capable of producing 2,500 kg/day. The output will be charged into a Salzgitter blast furnace to reduce the amount of pulverized injection coal, as well as into the electric arc furnace at its Peine, Germany, plant.

Production is to begin in the first half of next year.

“With the construction of the first DRI plant operating flexibly with both natural gas and hydrogen, the Salzgitter Group is consolidating its position as a pioneer in decarbonizing the steel industry. The operation of this plant will enable us within a few years to acquire the requisite knowledge to step up production on a far greater scale,” said Salzgitter AG executive board chairman Heinz Jörg Fuhrmann.