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®.
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%
2023
BeWiser Continuation of the accompanying research
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.
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.
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.