Germany’s economy minister Robert Habeck has announced €2.6 billion in funding to support the decarbonization of the Saarland steel industry.

The planned funding is subject to approval by ‘EU competition authorities’, according to online reports.

"If steel production were to disappear here, the location would not only lose steel, but also the automotive industry, the supplier industry."

German economy minister, Robert Habeck

"If steel production were to disappear here, the location would not only lose steel, but also the automotive industry, the supplier industry," the minister said.

The announcement was made on 11th December during a visit to SHS – Stahl-Holding-Saar, the holding company for the steel industry in Saarland.

“This is momentous news for Saarland’s steel industry. This enables us to make a historic transition in production – one that will cut carbon emissions by 55% by 2030.”

Stefan Rauber, chairman of the management board of SHS

“This is momentous news for Saarland’s steel industry. This enables us to make a historic transition in production – one that will cut carbon emissions by 55% by 2030,” Stefan Rauber, chairman of the management board of SHS, said in a statement.

Under the Pure Steel+ transformation project, SHS and its subsidiaries Dillinger and Saarstahl, are aiming to reach carbon neutrality by 2045 by focusing on hydrogen use, electric steel production and recycling steel scrap. The plans involve producing up to 3.5Mt/yr of green steel from 2027/2028.

Source: Reuters