In the expansion phase of the SALCOS project, Salzgitter AG plans to use up to 150,000 tonnes of hydrogen per year. Part of this quantity will be produced in its own electrolysis plant with a capacity of 100 MW at the Salzgitter site from 2026. This plant is currently under construction and will have an annual production capacity of around 9,000 tonnes of hydrogen.
Gunnar Groebler, Chairman of the Board of Management of Salzgitter AG, emphasised that a fast connection to the hydrogen core network is critical to fully exploit the CO₂ saving potential of SALCOS. "We are counting on FNB Gas; we expect a reliable timetable for the construction of the hydrogen core network by submitting an application to the Federal Network Agency as soon as the state aid approval is received," said Mr Groebler.
Salzgitter has already planned concrete hydrogen deliveries in connection with the first partners. In April 2024, Salzgitter signed a preliminary agreement with the energy company Uniper for the purchase and supply of green hydrogen. This hydrogen will be used to power Uniper's planned expansion at Wilhelmshaven in 2028.
The European Commission has approved state aid of around €3 billion for the construction of a hydrogen pipeline system in Germany. The German government will provide financial guarantees to companies that will build and operate the €20 billion hydrogen network to cover initial losses in the phase of ramping up production from 2025. This support will allow companies to obtain more favourable loans.
Salzgitter AG's SALCOS transformation programme is taking an important step towards low-carbon steel production, with hydrogen playing an increasing role in this process. With this project, Salzgitter is expected to achieve its sustainable production goals and take a leading position in the industry.
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