Salzgitter: First SALCOS Plant Engineering Contracts Might Be Awarded This Fall
08/18/2022 - Germany’s Salzgitter AG expects to begin placing orders with plant engineers this fall for its low-carbon-emissions project and is seeking exemptions to any potential natural gas rationing measures, according to reports.
In a statement, Salzgitter said the letting of contracts follows the board’s decision in July to greenlight an initial EUR723 million investment in the project, dubbed Salzgitter Low-CO2 Steelmaking (SALCOS). Through the project, Salzgitter intends to convert its steelmaking to a direct-reduction-electric-arc-furnace route.
“We want to be delivering the first volumes produced via the SALCOS route to our customers even toward the end of 2025. Full transition of the integrated steel works in Salzgitter to low-carbon crude steel production is to be completed by 2033,” said Salzgitter chief executive Gunnar Groebler.
“This transition would put us in a position to save up to 95% of the carbon emissions of around 8 million tons produced every year, which approximates to 1% of Germany’s carbon emissions,” he said.
Meanwhile, the Reuters news service reported that Salzgitter is speaking to regulators about an exemption to natural gas rationing, should Russia further reduce supply. The company argues that its steel production is critical to Germany’s broader energy security plans and to local wintertime heating, Reuters said.
