German Stahl-Holding-Saar Group and its subsidiaries German steel plate producer Dillinger, long steel producer Saarstahl, and its subsidiary ROGESA have obtained federal permits for constructing a direct reduction plant and two electric arc furnace plants in Dillingen and Völklingen. The permits mark a major milestone in their transition to green steel production.
The direct reduction plant in Dillingen will supply both production sites with reduced iron pellets, while the electric arc furnaces will convert these pellets into CO2-reduced steel using scrap metal. The facilities are central components of the Power4Steel decarbonization project, making the companies the first German steelmakers to receive operating licenses for such equipment.
Stefan Rauber, CEO of Dillinger and Saarstahl, said the permits bring the company closer to achieving CO2 neutrality by 2045, with 70 percent of the production volume expected to be CO2-reduced by the early 2030s. The approval process benefited from early public engagement and cooperation with state authorities.
The Power4Steel project aims to establish climate-friendly steel production in Germany's Saarland region through advanced environmental technologies.