Stahl-Holding-Saar (SHS) has taken a significant stride forward in its pursuit of sustainable steel production by launching a closed tender process to procure up to 50,000 tons of locally produced green hydrogen. This initiative, a crucial milestone for the Power4Steel decarbonization project, underscores SHS's unwavering commitment to advancing the strategic development of a regional, cross-border hydrogen economy.

The steel conglomerate, comprised of Saarstahl AG, Aktien-Gesellschaft der Dillinger Hüttenwerke (Dillinger), and their joint subsidiary ROGESA Roheisengesellschaft Saar mbH (ROGESA), recognizes the pivotal role of hydrogen in realizing their decarbonization objectives. Hydrogen serves as an indispensable element in mitigating CO2 emissions associated with the steel industry's processes.

Jonathan Weber, Head of Transformation at SHS, underscored the significance of the tender process in propelling sustainable steel production forward. He expressed, "With this initiative, we are advancing our efforts towards achieving more sustainable steel production." As an industry, we are signaling our unwavering commitment and laying a robust foundation for the growth of the local hydrogen economy. Our ultimate aim is to introduce the market to the first CO2-reduced steel from Saarland by the targeted timeline of 2027/28."

The overarching objective of the Power4Steel project is to effectuate a substantial reduction in CO2 emissions through the adoption of climate-friendly production practices. By the timeline of 2027/28, SHS and its subsidiary entities envision the annual production of up to 3.5 million tons of green steel. Aligned with the EU's "Fit for 55" target, which seeks to slash CO2 emissions by 55% by 2030, the conglomerate plans to transition up to 70% of its production to climate-friendly methodologies initially.

To realize these ambitions, SHS is embarking on several key initiatives, including the construction of a direct reduction plant at the Dillingen site and an electric arc furnace (EAF) in Dillingen and Völklingen. Upon commencement of operations, these new facilities will leverage hydrogen for the production of green steel. Anticipating a surge in demand, hydrogen consumption is projected to escalate to 50,000 tons per year by 2030, with the potential for further growth to 120,000-150,000 tons annually in the foreseeable future.

The ongoing tender process for regional hydrogen supply aims to identify suitable hydrogen suppliers within the MosaHYc network, the hydrogen island network spanning the Grande Région. Selected suppliers will furnish SHS with green hydrogen for utilization in the direct reduction plant, with operations slated to commence in 2027. The tendering process is scheduled to reach its conclusion by the close of the year, marking a pivotal step forward in SHS's journey towards sustainable steel production.