- The EU Commission approved state aid for SALCOS®, enabling up to €1 billion in national funding.
- Salzgitter AG has already approved €723 million for the first development stage.
- The first stage, with a capacity of 1.9 million tons of crude steel per year, is set to be completed by the end of 2025.
- The transformation will replace coking coal with hydrogen, reducing annual carbon emissions by 95%.
EU Commission Approval
The EU Commission has approved the state aid measures for Salzgitter AG's SALCOS® program, declaring them compatible with European law. This approval is a crucial step for securing the requested national funding.
Funding Details
Following an administrative agreement signed on September 15, 2022, by Minister President Stephan Weil and State Secretary Stefan Wenzel, the Federal Government and the Federal State of Lower Saxony are expected to contribute up to €700 million and €300 million, respectively. Salzgitter AG has already approved €723 million for the first development stage.
Project Timeline
The SALCOS® program aims to convert steel production at Salzgitter into low-carbon crude steel production in three stages by 2033. The first stage, with a crude steel capacity of 1.9 million tons per year, is scheduled to be operational by the end of 2025.
Technological Transformation
The transformation involves building two direct reduction plants and three electric arc furnaces, which will replace the existing blast furnaces and converters. This shift will enable the replacement of coking coal with a hydrogen-based production route.
Environmental Impact
The new hydrogen-based route is expected to reduce annual carbon emissions by approximately 95%, saving around 8 million tons of CO2 and avoiding about 1% of Germany's total carbon emissions.
