Salzgitter Issues Tender for Hydrogen Procurement in Steel Production

Salzgitter AG has announced its call for tenders to meet hydrogen demands for the initial phase of its SALCOS® initiative, aimed at Low CO2 Steelmaking transformation. This marks a pivotal step as the company moves forward with its structured process, inviting firms to register and participate in the bidding process.

In the first phase of SALCOS®, Salzgitter AG plans to utilize up to 150,000 tons of hydrogen annually at its Salzgitter site. A significant portion of this hydrogen, approximately 9,000 tons per year, will be generated on-site starting from 2026, through its own 100 MW electrolysis plant currently under construction at the factory premises. This initiative underscores the company's commitment to sustainable practices by reducing carbon emissions in steel production.

External hydrogen supply is expected to commence by 2027, contingent upon the establishment of connections to the hydrogen core network or alternative supply routes. Flexibility will be key, with provisions in place to accommodate potential deliveries starting later.

Gunnar Groebler, Chairman of the Executive Board at Salzgitter AG, stated, "To maximize the CO2 reduction benefits of SALCOS®, it is crucial to promptly connect the Salzgitter site to the hydrogen core network. We are relying on FNB Gas (FNB Gas represents a consortium of major cross-regional gas transmission companies in Germany.) to submit their application for the core network to the Federal Network Agency as soon as state aid approval is secured. We anticipate a dependable timeline for constructing the hydrogen core network, an endeavor that must be approached with determination."

Concrete plans for hydrogen deliveries are already in motion, with initial partnerships solidifying Salzgitter AG's transition towards sustainable steel production. The company's proactive approach not only aligns with environmental goals but also positions it as a leader in adopting innovative solutions within the steel industry.

Salzgitter AG's initiative represents a significant leap towards reducing carbon footprints in industrial processes. By integrating hydrogen technology into their operations, they aim to set new benchmarks for sustainable steel production while contributing to broader environmental objectives.

The invitation for tenders signals a collaborative effort to secure reliable hydrogen sources, essential for scaling up SALCOS® and achieving substantial CO2 savings. As Salzgitter AG progresses towards operationalizing its electrolysis plant and establishing external supply networks, stakeholders anticipate a transformative impact on the steel manufacturing landscape.

With strategic partnerships already underway and a clear roadmap for hydrogen integration, Salzgitter AG is poised to usher in a new era of sustainable steel production, reinforcing its commitment to environmental stewardship and technological advancement in the global market.