According to SHS, the 2-million-metric-ton direct reduction plant will be based on Midrex Technologies’ Flex technology, which offers the flexibility to work with various mixing ratios of natural gas and hydrogen. Plant construction firms Primetals Technologies, Midrex Technologies and the DSD Steel Group have been commissioned to build the plant.

The EAF for heavy plate manufacturer Dillinger is also being built by Primetals Technologies and the DSD Steel Group. SMS Group was chosen to build the EAF for wire rod and bar manufacturer Saarstahl.

With the project, SHS Group is converting 70% of its total capacity to CO2-reduced production. Commissioning is set for 2028 and 2029.

Stefan Rauber, management board chairman of Aktien-Gesellschaft der Dillinger Hüttenwerke and Saarstahl AG, said the contracts are a “a decisive milestone” for the project. 

“We are making history in order to create the future. We will offer our customers at Dillinger and Saarstahl a high-quality portfolio of carbon-reduced steel and overall become a pioneer of decarbonization in Europe,” Rauber said.

However, he said the project requires “the unwavering backing and support” of policymakers. 

“We are firmly committed to climate protection as well as to Germany and Saarland as a business location. For this reason, we expect an active industrial policy at all levels, which supports energy-intensive companies in Germany and creates internationally competitive conditions. Because industries that must produce significantly more expensively in Europe and in Germany must not suffer because they remain loyal to the location, companies that invest in Germany must also be supported by Germany.”