Posted on 13 Dec 2023
Germany’s economy minister Robert Habeck on Wednesday announced planned funding to the tune of €2.6 billion ($2.8 billion) for the conversion of steel mills in state Saarland towards zero-emission steelmaking.
During a visit to the state, the Minister of Economic Affairs and Climate Action made the pledge in the presence of state prime minister Anke Rehlinger and mill representatives. The grant would be bestowed on the state’s three main operations – plate maker Dillinger Hütte, SBQ maker Saarstahl, and their joint pig iron plant Rogesa. All three operations are encompassed under the roof of Staar-Holding Saar (SHS). The minister’s pledge will still be subject to the approval by EU competition authorities, Kallanish understands.
“This is momentous news for Saarland’s steel industry. It enables us to make a historic transition in production,” said Stefan Rauber, chairman of SHS as well as ceo of Dillinger and Saarstahl.
The transformation project aims at climate neutrality by 2045. To achieve this, Dillinger and Saarstahl are focused on the use of hydrogen, on electric steel production and on recycling steel scrap. Taking the funding conditions into account, planning began this year for construction of a direct reduction plant and two electric arc furnaces at the mills’ sites in Dillingen and Völklingen.
The group targets production of up to 3.5 million tonnes/year of green steel starting in 2027/2028. The public funding that has now been announced is essential for the projected investments of around €3.5 billion, SHS says.
Source:Kallanish
