The steel industry in Saarland has launched a tender to purchase 50,000 tons of green hydrogen for its Power4Steel decarbonization project.
This project aims to convert 70% of its production to climate-friendly operations by 2028, producing 3.5 million tons of green steel annually. The European Commission approved German state aid of EUR 2.6 billion in December 2023 to support this initiative.
Improvement in steel production in Saarland
SHS and its subsidiaries, including Saarstahl, Dillinger and ROGESA, plan to build a direct reduction ironmaking (DRI) plant and an electric arc furnace (EAF) at the Dilligen and Völklingen sites. These facilities will use green hydrogen in the steel production process.
The closed tender focuses on the local supply of green hydrogen and is aimed at suppliers along the planned Mosel Saar Hydrogen Conversion (MosaHYc) pipeline, which will connect Völklingen (Germany), Carling (France), Bouzonville (France) and Perl (Germany). Currently under development by GRTgaz of France and Creos Deutschland of Germany, the 100 km pipeline aims to transport up to 20,000m³/h of hydrogen.
Jonathan Weber, Head of Transformation at SHS, details that the bidding process represents an important step in the company’s journey towards more sustainable steel production. “We are sending a clear signal and creating a secure framework for the development of the local hydrogen economy,” he added.
Comprehensive support of the local hydrogen economy
DRI can use raw materials such as coal or natural gas to react with oxygen in iron ore to produce reduced iron, which is then processed into steel. By using green hydrogen as a feedstock, up to 95% of the CO₂ emissions from traditional steelmaking could be reduced. traditional blast furnace steel in blast furnaces.
The main focus is on local supply, aiming to strengthen the green hydrogen economy in the region by promoting the creation of infrastructure and technological development necessary for the widespread adoption of this clean energy source.
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Source: GMK Center
Photo: Shutterstock
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