SHS Group has announced a EUR 4.6 billion investment in the Power4Steel project, one of Europe's largest decarbonization initiatives. This joint venture with Dillinger and Saarstahl will establish a new Direct Reduced Iron (DRI) plant and Electric Arc Furnaces (EAFs). The project has secured EUR 2.6 billion in public funding from federal and state governments, with the remaining financing provided by the companies.
The new DRI plant, to be built by Primetals Technologies, Midrex Technologies Inc., and DSD Steel Group, will utilize innovative Midrex Flex technology, allowing for flexible use of natural gas and hydrogen mixtures. It will supply up to 2 million tons annually of reduced iron pellets to steel plants in Dillingen and Völklingen.
Two new EAFs will also be constructed as part of the project. One, built by Primetals Technologies and DSD Steel Group for Dillinger, and the other by SMS Group for Saarstahl. These furnaces will utilize the reduced iron pellets from the DRI plant and steel scrap to produce low-carbon steel.
With an annual crude steel production capacity of 3.5 million tons, the new facilities aim to significantly reduce the carbon footprint of Saarstahl, Dillinger, and ROGESA. Increased use of steel scrap and hydrogen targets a 55% reduction in carbon emissions compared to the early 1930s (a reduction of 4.8 million tons of CO2 annually). The project also encompasses environmental design improvements, infrastructure upgrades, and logistical enhancements.
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