Germany-based steelmaker Salzgitter Group has announced that its supervisory board has approved the application to make own funds of €723 million for implementing the first stage of the SALCOS® - Salzgitter Low CO2 Steelmaking program, with the commensurate cash effect over the years from 2022 through 2026.
SALCOS® is aimed at converting the integrated steelworks into low-carbon crude steel production in three stages over the period up until 2033. Up to around 95 percent of the carbon emissions amounting to approximately 8 million mt a year will be gradually reduced as a result.
As part of the first expansion stage, an electrolysis, a direct reduced iron plant and an electric arc furnace are to be built by the end of 2025. These facilities will enable the company to annually produce 1.9 million mt of low-carbon crude steel, thereby replacing a blast furnace and a converter. Along with this investment, the company is counting on substantial public funding. The approval and appraisal process for these public funds has not yet been concluded.