With SALCOS® (Salzgitter Low CO2 Steelmaking), we have laid the foundations for virtually climate-neutral steel production together with partners from industry and research. Central elements of the program are electricity from renewable sources and its use in the production of hydrogen by means of electrolysis. This green hydrogen will replace the coal that we currently use in the conventional blast furnace process. This will be possible with the help of so-called direct reduction plants, in which iron ore is reduced to iron directly in its solid-state using hydrogen. With this technology, water vapor is emitted instead of CO2.
To produce green steel, our SALCOS® program pursues the Carbon Direct Avoidance Strategy, which stands for avoiding the generation of CO2 in steel production from the outset. Overall, this will enable us to reduce our CO2 emissions by over 95 %.
How can hydrogen contribute to the production of green steel?
SALCOS® plans to use hydrogen for the production of green steel. We currently produce pig iron using coal in our blast furnaces. This process releases CO2. In direct reduction, however, iron ore is reduced using hydrogen. The hydrogen reacts directly with the oxygen in the iron ore (iron oxide) in its solid state, converting it into direct reduced iron (DRI). Instead of CO2, this technology produces water (H2O), which is then reused in the integrated process.
In order to further process iron sponge, the porous material is finally melted down together with steel scrap in an electric arc furnace.
Our SALCOS® transformation program aims to gradually replace our blast furnaces with direct reduction plants. The first plant will go into operation in 2027.
How do we produce renewable hydrogen?
Hydrogen production at Salzgitter Flachstahl
Hydrogen is produced by electrolysis. In this chemical reaction, electricity splits water into its components hydrogen and oxygen. We use only electricity from renewable energy sources for this purpose. As an important component of SALCOS®, we are currently constructing a 100 MW electrolysis plant on the factory premises in Salzgitter.
Focusing on the future - Our successes
SALCOS® is our comprehensive program on the way to climate-neutral steel production. During our transformation process, we are celebrating many smaller and larger successes. In the Salzgitter Holding press releases, we keep you up to date on all developments relating to SALCOS® and green steel.
SALCOS® makes a significant contribution to achieving the climate targets set by society and politicians. In order to successfully transform the industry, we need the suitable economic policy framework, because natural gas, hydrogen, and renewable energy are significantly more expensive than the coal used today. This will ensure the competitiveness of the steel industry and the market growth of green steel during a transition phase.





