Steelmaker Salzgitter AG has signed a seven-year contract with energy service provider EWE for the long-term supply of green hydrogen from EWE’s planned 320mw facility in Emden, Germany.
Starting from 2030, Salzgitter’s Low CO2 steelmaking programme, SALCOS, will receive 10,000 tons (9071.8 tonnes) of green hydrogen per year – around 6.5% of SALCOS’ hydrogen requirements. Up to 150,000 tons (136,078 tonnes) of hydrogen per year will be used in the direct reduction plant of SALCOS; Salzgitter will produce around 9,000 tons (8164.7 tonnes) of this in its own 100mw electrolysis plant.
Gunnar Groebler, Chairman of the Executive Board, Salzgitter AG, stated: “With the SALCOS programme, we are incrementally converting our steel production to a virtually CO2-free route. The use of green hydrogen is a key component in this context. The contract with EWE represents an important step in this direction and strengthens our role as a frontrunner in the transformation of the steel industry.”
EWE CEO Stefan Dohler also commented: “A functioning hydrogen economy not only protects the climate. It also strengthens Europe’s industrial resilience, makes us less dependent on fossil fuel imports and helps to keep energy competitive over the long term. This agreement is a milestone, but not yet the goal. It shows that supply and demand for green hydrogen can come together. At the same time, there are initial positive signals regarding the regulatory framework. Now we have to use this momentum, initiate further industrial partnerships and build up the market step by step. This will continue to require competitive electricity prices, practicable rules for green hydrogen as well as long-term investment security. Only then will individual projects become a viable market.”
EWE and Salzgitter AG Agree Long-Term Green Hydrogen Deal
