The SALCOS project will convert Salzgitter’s integrated steel works into a low-carbon steel production site in three stages. The blast furnaces and converters will be replaced by direct reduction plants and electric arc furnaces to make the change from a coking coal process to a hydrogen-based route. Emissions are expected to be reduced by 95%.
 
“We have set ourselves ambitious goals under our ‘Salzgitter AG 2030’ corporate strategy,” said Gunnar Groebler, Salzgitter AG’s chief executive. “Today’s decision sends a strong signal that we have prepared the ground well with our strategy, while also underscoring our role as a pioneer in the decarbonization of the steel industry.”
 
In addition to Salzgitter’s own funds of around EUR723 million, the company is also banking on public funding for the project.
 
According to Groebler, the new facilities will enable the company to produce 1.9 million tons of green steel a year.
 
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