Salzgitter Flachstahl, a subsidiary of Salzgitter AG, and energy service provider EWE have finalised a long-term agreement for the supply of green hydrogen.
As part of the contract, 10kt per annum of green hydrogen from EWE’s Emden plant will be supplied to the SALCOS program, Salzgitter’s low-CO₂ plant currently in development in Saxony, Germany.
Gunnar Groeblar, chairman of the executive board of Salzgitter AG, said: “With the SALCOS® program, 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.
“Once again, we have resolved a chicken-and-egg dilemma and made an important business decision.”
The initial agreement is for seven years and will cover 6.5% of SALCOS’ hydrogen requirements.
EWE CEO, Stefan Dohler, added: "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.”
