Uniper has entered into an agreement to supply German steel producer Salzgitter with green hydrogen to produce low carbon steel.

Salzgitter, one of Europe’s largest steel producers, will use green hydrogen from Uniper’s site in Wilhelmshaven where it is developing two projects in parallel for the supply of the gas.

The first project is a planned import terminal capable of converting green ammonia back into hydrogen, and the second is a planned electrolysis plant, with the potential for a direct connection to an offshore wind farm which will be built in the North Sea.

The electrolysis plant and the entire downstream hydrogen infrastructure would function in a similar way to a ‘shock absorber’, Uniper stated, which would store energy from wind when output is highest, by conversion into hydrogen which can be transportable.

The aim would be to supply Salzgitter through the evolving German hydrogen pipeline network and for the development of cavern storage facilities. Uniper stated the two companies will ‘drive the ambitious vision’ of decarbonising Germany’s industry in support of the climate targets by contributing to this objective with specific projects.

“We are aligning Salzgitter AG to low CO2 production processes and the circular economy.''

Gunnar Groebler, CEO, Salzgitter

Gunnar Groebler, CEO of Salzgitter, commented: “We are aligning Salzgitter AG to low CO2 production processes and the circular economy. The secure and economically viable sourcing of green hydrogen is a fundamental prerequisite on our journey towards low CO2 steelmaking. The cooperation with Uniper is another step on the way to leading this game-changing technical transformation to success, together with strong partners.”

“We need ‘green electrons’ and ‘green molecules’, if we want to achieve the proclaimed climate protection objectives, while preserving our industry in Germany.''

Klaus-Dieter Maubach, Uniper chief executive

Uniper chief executive Klaus-Dieter Maubach added: “We need ‘green electrons’ and ‘green molecules’, if we want to achieve the proclaimed climate protection objectives, while preserving our industry in Germany. The Wilhelmshaven site offers all the necessary preconditions for creating Germany’s first major hydrogen hub. Large-scale hydrogen production facilities are to be built here for the purpose of decarbonising steel production in Lower Saxony.’’

Uniper is also turning the site of its coal fired power plant in Gelsenkirchen-Scholven into an innovation hub for hydrogen technology, which, according to the company, will be specifically designed to address industry needs.

Source: ReNews