Salzgitter and ANDRITZ Break Ground on 100 MW Green Hydrogen Plant for Low-Carbon Steel Production

Salzgitter and ANDRITZ Break Ground on 100 MW Green Hydrogen Plant for Low-Carbon Steel Production

(IN BRIEF) Salzgitter has officially broken ground on a 100 MW electrolysis plant designed to produce green hydrogen for low-carbon steel production as part of its SALCOS® program. The project, set to deliver hydrogen starting in 2026, will play a key role in the company’s transition to nearly carbon-free steel by 2033. With support from ANDRITZ and HydrogenPro, this initiative aims to reshape the steel industry’s carbon footprint.

(PRESS RELEASE) GRAZ, 20-Feb-2025 — /EuropaWire/ — Salzgitter has taken a significant step towards revolutionizing steel production with the laying of the cornerstone for one of Europe’s largest green hydrogen production plants. The 100 MW electrolysis facility, located in Salzgitter, will produce approximately 9,000 tons of green hydrogen annually, starting in 2026. This hydrogen will be crucial for Salzgitter’s transition to low-carbon steel production as part of its SALCOS® (Salzgitter Low CO2 Steelmaking) program, which aims to achieve near-carbon-free steel manufacturing.

The electrolysis plant, which will utilize pressurized alkaline electrolysis technology from HydrogenPro, will be built by international technology company ANDRITZ on an EPC (engineering, procurement, and construction) basis. The project is a critical part of Salzgitter’s phased transition to a sustainable steel production process.

A Key Milestone for Low-Carbon Steelmaking
Gerd Baresch, Managing Director of the Technical Division at Salzgitter Flachstahl GmbH, emphasized the importance of the milestone: “The laying of today’s cornerstone marks another key achievement in the SALCOS® program. It shows that our company’s transformation towards low-carbon steel production is progressing as planned. By installing this system for on-site hydrogen production, we are fulfilling our part of the commitment. Now, it’s up to governments to establish favorable conditions for green production, particularly by ensuring competitive grid costs and providing strong incentives for the hydrogen economy.”

ANDRITZ’s Role in Driving the Green Transition
Sami Pelkonen, Executive Vice President for Green Hydrogen at ANDRITZ, expressed the company’s pride in supporting the transition to climate-friendly steel: “We are excited to contribute to the creation of a more sustainable steel industry with the construction of this 100 MW electrolysis plant. Our extensive experience in building large-scale plants will be instrumental in delivering this innovative project. It aligns perfectly with our growth strategy focused on decarbonization, and it helps our customers like Salzgitter in achieving their green transformation goals.”

SALCOS®: A Multi-Phase Green Steel Project
The SALCOS® program is being implemented in stages, with the ongoing construction of a direct reduction plant and an electric arc furnace. The green hydrogen produced at the new electrolysis plant will be a key component of these facilities. The first steel products created using this carbon-reduced method will be available to the market by 2026, and the conversion to virtually carbon-free steel production at the Salzgitter site is expected to be completed by 2033.

This project marks a major milestone in the broader effort to decarbonize the steel industry, providing an essential blueprint for the future of green manufacturing.

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, Hydropower and Environment & Energy. 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 30,000 employees and over 280 locations in more than 80 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 160 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 2023, we generated external sales of around € 11 billion, with a crude steel capacity of 7 million tons.

Further information: www.salzgitter-ag.com

Media Contact:

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

SOURCE: ANDRITZ