Salzgitter AG and Uniper SE have signed a pre-contract for the supply and purchase of green hydrogen. The hydrogen is to be produced in the large-scale electrolysis plant planned by Uniper, which is scheduled to be commissioned in Wilhelmshaven in 2028.

The green hydrogen will be required for the SALCOS® - Salzgitter Low CO2 Steelmaking programme and will be used in a direct reduction plant to produce almost CO2-neutral steel.

The preliminary agreement covers the technical and commercial framework conditions for the supply of hydrogen. Depending on the availability of the German H2 core network and a specific pipeline route from Wilhelmshaven to Salzgitter, Uniper could supply up to 20kt of certified green hydrogen to Salzgitter every year starting 2028 at the earliest. This will be produced using renewable energies in the 200 MW electrolysis plant that Uniper plans to build on the site of the former hard coal-fired power plant in Wilhelmshaven. This is the first step towards an external hydrogen supply for SALCOS®, which will require up to 150kt/yr of hydrogen in its first stage.

''This agreement with Uniper is another important step on our path to green steel.''

Gunnar Groebler, CEO of Salzgitter AG

Gunnar Groebler, CEO of Salzgitter AG, commented: “With SALCOS®, we are a pioneer in the decarbonization of raw materials industry. From the beginning, we have relied on a network of strong partners to implement the program. The production and availability of green hydrogen is a key success criteria for SALCOS®. This agreement with Uniper is therefore another important step on our path to green steel. The energy infrastructure and the associated power grids now urgently need to be expanded.”

''We look forward to working with Salzgitter AG and helping to reduce Salzgitter AG's emissions.''

Holger Kreetz, COO of Uniper

Holger Kreetz, COO of Uniper stated: “At Uniper, we pursue the clear goal of supporting companies in the decarbonization of their production processes. Green hydrogen plays a crucial role in this - especially in energy-intensive industries such as the steel industry. We look forward to working with Salzgitter AG and helping to reduce Salzgitter AG's emissions. Such partnerships demonstrate the added value of our Energy Transformation Hub Northwest, strengthen the region's role as an energy hub for the future and make a valuable contribution to achieving Germany's climate targets together.’’

Uniper will build a terminal in Wilhelmshaven for the import of green ammonia by ship with an output volume of at least 300kt of H2, which can be converted into hydrogen and also fed into the German nuclear grid.