In a notable stride towards reducing carbon emissions in the German steel industry, Salzgitter AG and Uniper SE have sealed a pre-contract for the procurement and sale of green hydrogen. This green hydrogen will originate from an extensive electrolysis facility slated for development by Uniper, with operations scheduled to commence in Wilhelmshaven by the year 2028.
The green hydrogen secured under this agreement is designated for employment within Salzgitter AG’s SALCOS® initiative – the Salzgitter Low CO2 Steelmaking program. This program specifically targets utilization within the direct reduction plant currently under construction in Salzgitter. The overarching objective of this plant is to yield nearly CO2-neutral steel, thereby constituting a significant stride towards curbing the carbon footprint within the German steel industry.
The preliminary accord delineates the technical and commercial parameters surrounding hydrogen supply. Predicated on variables such as the accessibility of the German H2 core network and the establishment of a dedicated pipeline route from Wilhelmshaven to Salzgitter, Uniper could potentially provide up to 20,000 tons of certified green hydrogen annually to Salzgitter, commencing in 2028.
Gunnar Groebler, CEO of Salzgitter AG, accentuates the pivotal role of green hydrogen availability in facilitating the success of SALCOS®, stressing the imperative for an expanded energy infrastructure and bolstered power grids.
Holger Kreetz, COO of Uniper, reaffirms the corporation’s steadfast commitment to bolstering decarbonization endeavors, particularly within energy-intensive sectors such as steel production. He underscores the significance of collaborative ventures like the one with Salzgitter AG in realizing climate objectives and propelling Germany’s energy transition.
The strategic positioning of Wilhelmshaven, coupled with its access to renewable energy sources and forthcoming infrastructure, renders it an optimal locale for Uniper’s Green Wilhelmshaven initiatives. These initiatives encompass the expansion of electrolysis capacity alongside the construction of a green ammonia import terminal.
Driven by Salzgitter Group’s carbon direct avoidance strategy, the SALCOS® program endeavors to transition from coal-based steel production to direct reduction technology, harnessing natural gas and progressively integrating green hydrogen. The pre-contract established with Uniper signifies a seminal stride towards actualizing this ambitious endeavor.