Green Hydrogen Breakthrough: Salzgitter Group and ANDRITZ Lead the Charge in Sustainable Steel

Green Hydrogen Breakthrough: Salzgitter Group and ANDRITZ Lead the Charge in Sustainable Steel

(IN BRIEF) The Salzgitter Group, a prominent player in the steel industry, has partnered with technology leader ANDRITZ to create one of Europe’s largest green hydrogen facilities as part of the SALCOS® program. ANDRITZ will build a 100 MW electrolysis plant at the Salzgitter Flachstahl GmbH site, aiming to produce approximately 9,000 tons of green hydrogen annually starting in 2026. This hydrogen will be used for green steel production, marking a significant step toward environmentally friendly steel manufacturing. The SALCOS® program aims to achieve virtually carbon-neutral steel production, with the first phase expected to be operational in 2026 and full carbon reduction by 2033. Financing for this project has been secured through subsidies from Germany and Salzgitter AG’s own resources. This initiative represents a substantial advancement in sustainable steel production in Europe.

(PRESS RELEASE) GRAZ, 20-Sep-2023 — /EuropaWire/ — ANDRITZ (VIE: ANDR), an international technology group based in Austria, announces that it has been selected by the esteemed Salzgitter Group, a pioneering force in the steel industry, to play a pivotal role in one of Europe’s most groundbreaking green hydrogen projects, heralding a new era in sustainable steel production through the SALCOS® program.

ANDRITZ, renowned for its engineering prowess, will take the helm in constructing a state-of-the-art 100 MW electrolysis plant at the Salzgitter Flachstahl GmbH facility, operating on an Engineering, Procurement, and Construction (EPC) basis. The plant will harness cutting-edge pressurized alkaline electrolyzer technology sourced from HydrogenPro. Commencing in 2026, this facility will annually produce approximately 9,000 tons of green hydrogen, a pivotal step towards enabling green steel production within the SALCOS® program.

Ulrich Grethe, Chairman of the Salzgitter Flachstahl GmbH Management Board, explained: “The commissioning of the electrolysis plant marks a significant step in the SALCOS® program and underlines our leading position in the transformation of the industry. In order to enable us to reduce the CO₂ footprint of our steel production in the future, it is imperative that we connect to the emerging hydrogen infrastructure as quickly as possible. This is the only way we will be able to fully exploit the potential of SALCOS®. Here, policymakers are now also called upon to remove bureaucratic roadblocks and accelerate the development of a hydrogen infrastructure.”

Domenico Iacovelli, ANDRITZ GROUP Executive Board Member, said: “We are proud that Salzgitter selected us as a partner and look forward to contributing to their ambitious program towards green steel production. The compact design of our green hydrogen plant perfectly fits into the existing infrastructure. Our vast experience in executing large-scale projects gives us a solid foundation for implementing this innovative project in collaboration with our partner HydrogenPro, whose pressurized electrolyzer stacks are very well suited for large-scale industrial applications.”

The realization of the SALCOS® program will unfold in three pivotal stages. The inaugural phase, set to go live in 2026, will comprise a direct reduction plant, an electric arc furnace (both already in the pipeline), and the game-changing 100 MW electrolysis plant, which will be instrumental in green hydrogen production. The transformation towards achieving virtually carbon-free steel production at the Salzgitter site is slated for completion by the end of 2033, comfortably ahead of the regulatory mandates.

The financing for the first phase of the SALCOS® program has been fortified through generous subsidies from the Federal Republic of Germany and the State of Lower Saxony, complemented by the robust financial backing of Salzgitter AG.

This collaborative endeavor between Salzgitter Group and ANDRITZ marks a significant stride towards realizing a sustainable and environmentally responsible future for the steel industry. It underscores their unwavering commitment to reducing carbon emissions and fostering innovation within the sector, setting a new standard for green steel production in Europe.

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ANDRITZ GROUP
International technology group ANDRITZ offers a broad portfolio of innovative plants, equipment, systems, services and digital solutions for a wide range of industries and end markets. Sustainability is an integral part of the company’s business strategy and corporate culture. With its extensive portfolio of sustainable products and solutions, ANDRITZ aims to make the greatest possible contribution to a sustainable future and help its customers achieve their sustainability goals. ANDRITZ is a global market leader in all four of its business areas – Pulp & Paper, Metals, Hydro and Separation. Technological leadership and global presence are cornerstones of the group’s strategy, which is focused on long-term profitable growth. The publicly listed group has around 29,900 employees and over 280 locations in more than 40 countries.

Salzgitter AG
Salzgitter AG ranks as one of Germany’s leading steel and technology groups. As a pioneer in the circular economy, we focus on sustainable innovation and on transforming products and processes in the business units of Steel Production, Steel Processing, Trading and Technology. With our “Salzgitter AG 2030″ strategy and anchored in the principle of “Pioneering for Circular Solutions”, we are setting new benchmarks in the industry. Our aspirations are realized through strong initiatives and programs such as SALCOS^® – Salzgitter Low CO₂ Steelmaking. Through partnerships and in networks, we are actively driving the process of development towards a circular economy. With around 25,000 employees worldwide at 150 national and international subsidiaries and associate companies, we live up to our global aims for growth, profitability and our pioneering position. In the financial year 2022, we generated external sales of around € 12 billion, with a crude steel capacity of 7 million tons.

More information is available at: People, Steel and Technology | Salzgitter AG (salzgitter-ag.com)

The SALCOS program stage one of Salzgitter AG is supported as follows:

Media contact:

Susan Trast
HEAD OF CORPORATE COMMUNICATIONS & MARKETING
susan.trast@andritz.com

SOURCE: ANDRITZ