With SALCOS® (Salzgitter Low CO2 Steelmaking), we have joined forces with partners from industry and research to lay the foundations for virtually CO2-free steel production. Central elements of the concept are electricity from renewable sources and its use in the production of hydrogen by means of electrolysis. This green hydrogen will replace the coal 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 the solid state by hydrogen. This technology emits water vapor instead of CO2.
Our program SALCOS® thus pursues the Carbon Direct Avoidance approach, which stands for avoiding the generation of CO2 in steel production from the outset. Overall, our approach enables us to reduce CO2 emissions in steel production by over 95%.
How can hydrogen reduce CO2 emissions in steel production?
We currently produce pig iron by using coal in our blast furnaces. This releases CO2 as a result of the process. In direct reduction, on the other hand, iron ore is reduced with the aid of hydrogen. The hydrogen reacts with the oxygen in the iron ore (iron oxide) directly in the solid state and converts it into sponge iron (almost pure iron). Instead of CO2, this technology produces water (H2O), which in turn is reused in the integrated process. In order to be able to process sponge iron further, the porous material is finally melted down together with steel scrap in an electric arc furnace.
Our SALCOS® technology concept envisages the gradual replacement of our blast furnaces with direct reduction plants. The first of these plants could go into operation in 2026.
How do we produce green hydrogen?
Hydrogen production at Salzgitter Flachstahl
Hydrogen can be produced by means of electrolysis. In this chemical reaction, water is split into its components hydrogen and oxygen by means of electricity. It is beyond doubt for us that the electricity required for this must come from renewable energies such as wind power. For the production of green hydrogen, we erected seven wind turbines on our Group premises in Salzgitter under the project name "WindH2 - Wind Hydrogen Salzgitter", together with Avacon Natur GmbH. The green electricity generated by these plants is used to produce green hydrogen by means of PEM electrolysis.
Another electrolysis is being operated as part of the GrInHy2.0 project. The high-temperature electrolyzer is the largest of its kind in the world and operates highly efficiently. Unlike PEM electrolysis, the GrInHy2.0 electrolyzer uses steam from industrial waste heat from steel production. Both plants can cover today's hydrogen demand for annealing processes and for steel refining, thus displacing gray hydrogen generated from natural gas from our production. However, the quantity required for this is only a fraction of the hydrogen needed for SALCOS® implementation.
Focusing on the future - Our successes
SALCOS® is a comprehensive project in various sub-steps. 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 current developments relating to SALCOS®.
26.05.23 | Article of Salzgitter Flachstahl GmbH
Green steel for AR Shelving – Grupo Arania
The "Grupo Arania" is a Spanish group of companies operating in the steel processing sector. A subsidiary of the Arania Group is AR Shelving.
End of 2033
Full SALCOS® conversion: CO2 reduction up to 95%
End of 2030
Second SALCOS® expansion stage: 50% reduction in CO2 emissions
End of 2025
First SALCOS® expansion stage: CO2 reduction of 30%
2022
μDRAL –
Mikro-Direkt-ReduktionsAnLage
Construction of a demonstration plant for direct reduction in Salzgitter
2021
Commissioning WindH2 electrolysis
2020
Commissioning of world's largest high-temperature electrolysis (GrInHy2.0)
2020
Commissioning "Windpark Salzgitter" (30 MW)
2020
Start of SALCOS® accompanying research (BeWiSe, MACOR follow-up project)
2019
Start GrInHy2.0
2017
Start SALCOS® Feasibility Study (MACOR)
2016
Start of research project GrInHy
2015
Project start SALCOS®
Step by step to CO2 neutrality
The three expansion stages set clear targets for the coming years. By gradually replacing the blast furnaces currently in use with direct reduction plants and electric arc furnaces, we will be technically in a position to cut emissions by around 95 percent by the end of 2033.
This is a strong undertaking, which will enable us to meet our targets and fulfill our responsibility to this and future generations.
SALCOS® comprises three central building blocks and is accompanied by various research projects. From hydrogen generation to sector coupling and iron ore direct reduction, we are working with various specialists. The program is supported by extensive studies on technical and economic feasibility, which are used to define the necessary framework conditions and schedule the next steps.
Press commentary on SALCOS®
With the launch of the SALCOS® project and the resulting pioneering position in the industry, we are also attracting a great deal of public attention. We are pleased about the growing interest in Carbon Direct Avoidance and the fact that other steel producers are also increasingly considering this approach.
06.03.2023
umwelt.niedersachsen.de
In the μDRAL project project of Salzgitter AG, the world's first direct reduction plant is being used in an integrated steel mill that can be operated flexibly with ...
25.10.2022
NZZ.ch
In Salzgitter wird an der Zukunft des Stahlwerks gebaut. Ab 2033 soll es keine mit Kohle betriebenen Hochöfen mehr geben, um Stahl zu produzieren.
31.07.2022
Die Maus | ardmediathek.de
In the video from 9m39s: 'Die Sendung mit der Maus' dedicates a factual story to our SALCOS® programme and the production of green steel at Salzgitter AG ...
17.11.2021
eMove360°
As part of the eMove360 ° Europe 2021 international trade fair for mobility 4.0 electrically-networked-autonomous (November 16 to 18), the winners ...
28.11.2021
NDR.de
Die deutsche Stahlindustrie muss umdenken. Auch die Salzgitter AG in Niedersachsen stößt noch riesige Mengen CO2 aus. Aber spätestens ...
08.10.2019
EURACTIV Deutschland
Germany’s energy-intensive steel industry needs to reinvent itself so that it can meet European climate targets and remain competitive ...
26.07.2019
Deutsche Welle
Alle reden von einer Dekarbonisierung der Wirtschaft. Im Detail wird deutlich, welche Herkulesaufgabe das ist. Zum Beispiel bei der Herstellung von …
13.07.2019
Spiegel Online
Wasserstoff, hergestellt aus Ökostrom, ist für die Industrie nahezu die einzige Möglichkeit, klimaneutral zu wirtschaften. Der Aufwand für ...
22.05.2019
Clean Wire Energy
Volker Hille’s passion project could cut Germany’s entire CO2 output by almost one percent. He is head of corporate technology at Salzgitter Group ...
We make the difference -
for the environment
Our commitment to people, the environment and society
You can't see the difference, but it will be significant for our environment. While our products will remain of the usual highest quality, with the switch to low CO2 production our emissions will be significantly reduced. We have a clear target in at least 95% less CO2 emissions in steel production.
Mannesmann H2ready® – pipes for the transport and storage of hydrogen
The safe transport of hydrogen will play a central role in an increasingly renewable energy mix of the future. With its "Mannesmann H2ready®" steel pipes, Mannesmann Line Pipe GmbH has developed a product specifically for the transport and storage of hydrogen. The mechanical and technological properties of the steel pipes exceed the requirements of the EIGA directive and thus offer optimum safety and service life.
Flat steel products with significantly lower CO2 footprint
With SALCOS®, Salzgitter AG will gradually convert its steel production to hydrogen-based processes. But the Salzgitter Group is already producing low-CO2 flat steel. The cooperation of the scrap-based electric furnace route at the Peine plant with the further processing of the Salzgitter plant results in high-quality flat steel products in a differentiated range of dimensions and grades with a significantly reduced CO2 footprint...
Hydrogen: a safe bet!
Hydrogen is an important element in the success of the energy transition. Along the entire value chain, Salzgitter Mannesmann Forschung GmbH is involved in joint projects on safe hydrogen infrastructure, production and hydrogen-based steel production.
It supports its customers in qualifying metallic materials for hydrogen applications, developing and optimizing metallic materials, and providing technical advice on materials, design and standards. The company also offers services in the fields of advanced analytics, innovation management and patent analysis.
Salzgitter Mannesmann Forschung GmbH
Green power beams with up to 50 percent CO2 savings
Peiner Träger GmbH has been producing reliable steel beams for over 100 years now – and with the start of 2023, it is also taking a big step further in the direction of sustainability.
By purchasing real green electricity, the company can offer its customers individual and sustainable solutions: PTG green power beams - certified and confirmed by EPDs.
We stand up for green hydrogen
Not only we, but also our entire economy can become more sustainable with the help of hydrogen. That's why we are involved in various projects to build a green hydrogen economy and promote hydrogen-based technologies.
Wasserstoff Campus Salzgitter
The Hydrogen Campus Salzgitter is dedicated to the development and research of hydrogen technologies and the use of hydrogen as an energy carrier to promote the hydrogen economy and contribute to sustainable energy supply.
HySteel
The members of the HySteel Expert Commission are jointly pursuing the goal of developing a forward-looking strategy for low-emission, hydrogen-based steel production in 2050 for Germany.
H2Global
H2Global is a support scheme to achieve the goals adopted in the National Hydrogen Strategy (NWS) related to green hydrogen (H2) production and import.
GET H2
To establish the core for a nationwide hydrogen infrastructure to make efficient implementation of the energy transition possible: That is the goal of the GET H2 initiative.
With SALCOS, we have deliberately opted for a so-called "Carbon Direct Avoidance (CDA)" strategy that avoids the generation of CO2. With this project, we are taking a pioneering position in the industry. The associated challenges are extensive and the hurdles primarily economic in nature. The cost of natural gas, hydrogen and renewable energy is significantly higher than that of the coal used today, and so we are dependent on an appropriate political framework to remain competitive.
International
competition
In order to finance the technologies required for SALCOS® and offset the higher operating costs, suitable regulatory framework conditions would have to be created. However, as an international company operating on the world market, it is not possible to pass on the increased costs to the product because the price pressure is immense. In other countries, steel is produced more cheaply, but with more emissions and in compliance with lower standards.
Integration into
the steel mill
One of the biggest technical challenges is to integrate the new equipment into the existing steel mill. This project has not yet been implemented anywhere in the world. Salzgitter could therefore be the first steel company to successively incorporate a direct reduction plant into an integrated steel mill.
Economic
criteria
With the MACOR feasibility study, our team from Salzgitter Flachstahl and Salzgitter Mannesmann Forschung together with Fraunhofer institutes, examined whether the plans for CO2 reduction in our steel mill - in addition to technical and ecological requirements - also meet economic requirements. The feasibility of SALCOS® depends, among other things, on how the EEG levy will develop, for example. In addition, extensive calculations have already been carried out.
Responsibility for
the region and employees
With SALCOS® , we made a conscious decision to design the scenario in such a way that the equipment could be used in our integrated steelworks at the Salzgitter site. Relocating production to non-European countries in order to reduce the need for CO2 certificates, so-called carbon leakage, contradicts our idea of regional and global responsibility.
EU emissions
trading
With the MACOR feasibility study, our team from Salzgitter Flachstahl and Salzgitter Mannesmann Forschung together with Fraunhofer institutes, examined whether the plans for CO2 reduction in our steel mill - in addition to technical and ecological requirements - also meet economic requirements. The feasibility of SALCOS® depends, among other things, on how the EEG levy will develop, for example. In addition, extensive calculations have already been carried out.
Responsibility for
our environment
We understand sustainability as a concept of holistic responsibility. For this reason, we have opted for the so-called "Carbon Direct Avoidance (CDA)" strategy, in which the CO2 that has so far been produced process-related during the reduction of iron oxide in the blast furnace is avoided directly. With SALCOS® we are developing a concept for this project.
Technical
feasibility
Our project is technically very mature and can be implemented in a timely manner. The SALCOS® team and various external experts are continuing to work on optimizing the SALCOS concept . SALCOS implementation envisages a transformation process lasting several years in which blast furnaces and converters are gradually replaced by direct reduction plants and electric arc furnaces.
EU
climate targets
The European Union is playing a major role in global climate protection. To this end, it has already formulated numerous programs and regulations aimed at reducing CO2 emissions, particularly in the industrial sector. One important instrument for this goal is emissions trading. Compared to 1990 levels, CO2 emissions in the EU are to be reduced by 55% by 2030, with the aim of achieving climate neutrality by 2050.