Salzgitter AG has launched a tender for at least 100,000 tonnes of low-carbon hydrogen to be used at its green steel production facility in Salzgitter, Germany.
Part of this volume is expected to be generated from the company’s own 100MW electrolysis plant on site from 2026, accounting for a production volume of around 9,000 tonnes per year.
With the tender opened yesterday (June 24), the German steel producer now anticipates bids in a subsequent process. The delivery of Salzgitter’s plan will rely on Germany’s planned 9,700km hydrogen core network (HCN), or a comparable direct hydrogen pipeline.
Read more: Commission approves Germany’s €3bn hydrogen network finance plan
The external supply of hydrogen is scheduled to begin in 2027, provided that the HCN connection is established. H2 View understands possible deliveries set in at a later date will also be accepted.
The tender will complement the company’s Salzgitter Low CO2 Steelmaking (SALCOS®) transformation programme. The quantities that can be used in the SALCOS® expansion stage 1 is up to 150,000 tonnes per year.
“In order to fully exploit the CO2 savings potential of SALCOS®, we need a prompt connection to the Salzgitter site to the hydrogen core network,” explained Gunnar Groebler, Chairman of the Executive Board at Salzgitter.
“We are counting on FNB Gas submitting an application for the core network to the Federal Network Agency as soon as the state aid approval is available and expect a reliable timetable for the construction of the hydrogen core network, which must be tackled with determination.”
Upon completion of Salzgitter’s hydrogen-based crude steel production plant, planned for 2033, up to 95% of the current annual direct CO2 emissions of around 8 million tonnes can be saved.
Germany is understood to be one of the world’s largest steel producers, producing 35.4 million tonnes of the product in 2023, the eighth most across the globe.
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