The Salzgitter Group has selected technology provider ANDRITZ to supply one of Europe’s largest green hydrogen plants for the SALCOS® programme, which aims to achieve near CO2-free steel production. ANDRITZ will build a 100 MW electrolysis plant at the Salzgitter Flachstahl GmbH site on an EPC basis, incorporating pressurised alkaline electrolyser technology from HydrogenPro. The plant will comprise 18 units of HydrogenPro’s 5.5 MW cell stacks. Starting in 2026, the plant will produce around 9 ktonnes of green hydrogen per year, which will be used to make green steel, marking the start of the industrial utilisation of hydrogen under the SALCOS® programme. The company anticipates by switching the plant to 100% green hydrogen fed Direct Reduced Iron (DRI) plants, it can reduce CO2 emissions by over 95% from the process, which is expected to be completed by the end of 2033.

Ulrich Grethe, Chairman of the Salzgitter Flachstahl GmbH, explained: “the commissioning of the electrolysis plant marks a significant step in the SALCOS® programme 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 Lacovelli, ANDRITZ GROUP Executive Board Member, said: “we are proud that Salzgitter selected us as a partner and look forward to contributing to their ambitious programme 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 pressurised electrolyser stacks are very well suited for large-scale industrial applications.”

The SALCOS® programme will be realised in three stages. The first stage will be operational as early as 2026 and will comprise a direct reduction plant, an electric arc furnace, together with the 100 MW electrolysis plant for green hydrogen production. The conversion to near CO2-free steel production at the Salzgitter site is to be completed by the end of 2033, ahead of any statutory requirements. The financing of stage 1 of SALCOS® has been secured by a €700m ($749m) subsidy from the Federal Republic of Germany and a €300m ($321m) subsidy from the State of Lower Saxony, together with Salzgitter AG’s own funds.

Due to start production in 2026, the hydrogen will be used to make green steel as part of Salzgitter’s SALCOS® (Salzgitter Low CO2 Steelmaking) programme. Developed in 2015, the programme includes converting the company’s existing steel production from blast furnaces to direct reduction, initially based on natural gas and later using hydrogen.