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In a significant move towards decarbonizing the German steel industry, Salzgitter AG and Uniper SE have entered into a pre-contract for the supply and purchase of green hydrogen. This hydrogen will be produced in a large-scale electrolysis plant planned by Uniper, set to be operational in Wilhelmshaven by 2028.
The green hydrogen is earmarked for Salzgitter AG’s SALCOS® – Salzgitter Low CO2 Steelmaking program, specifically for use in the direct reduction plant being constructed in Salzgitter. This plant aims to produce nearly CO2-neutral steel, thereby making a substantial contribution to reducing the carbon footprint of the German steel industry.
The preliminary agreement outlines the technical and commercial framework for hydrogen supply. Depending on factors such as the availability of the German H2 core network and the establishment of a specific pipeline route from Wilhelmshaven to Salzgitter, Uniper could supply up to 20,000 tons of certified green hydrogen annually to Salzgitter starting in 2028.
Gunnar Groebler, CEO of Salzgitter AG, underscores the importance of green hydrogen availability for the success of SALCOS®, emphasizing the need for an expanded energy infrastructure and power grids.
Holger Kreetz, COO of Uniper, reaffirms the company’s commitment to supporting decarbonization efforts, particularly in energy-intensive industries like steel production. He highlights the value of partnerships like the one with Salzgitter AG in achieving climate targets and advancing Germany’s energy transformation.
Wilhelmshaven’s strategic location, access to renewable energies, and planned infrastructure make it an ideal site for Uniper’s Green Wilhelmshaven projects, which include the expansion of electrolysis capacity and the construction of a green ammonia import terminal.
The SALCOS® program, driven by Salzgitter Group’s carbon direct avoidance strategy, aims to transition from coal-based steel production to direct reduction technology, utilizing natural gas and increasingly green hydrogen. The pre-contract with Uniper marks a pivotal step in realizing this ambitious initiative. |
