(Salzgitter / Germany) – EWE AG and Salzgitter Flachstahl GmbH, a subsidiary of Salzgitter AG, have concluded a long-term agreement for the purchase of green hydrogen. According to the agreement, the Emden-based energy provider will supply 10.000 tons of the energy carrier annually from 2030 onwards via the hydrogen core network for environmentally friendly steel production within the framework of the " Salcos " (Salzgitter Low CO2 Steelmaking) program.
The Salcos construction site on the premises of Salzgitter Flachstahl GmbH. A direct reduction plant for the production of green steel using green hydrogen is being built here. © Salzgitter AG
The contract has an initial term of seven years. This will cover approximately 6,5 percent of Salcos' hydrogen needs. A total of 150.000 tons of hydrogen per year will be used in the direct reduction plant. Around 9.000 tons of this will be produced in a 100 MW electrolysis plant on the company's own steelworks site. This is the first large-scale purchase agreement for hydrogen from the 320-megawatt production plant that EWE is currently building in Emden, and also the first contract of this magnitude between Salzgitter AG and a hydrogen supplier. "Further delivery volumes from EWE are therefore also available for additional industrial partnerships," the company stated.
Frontrunner in the steel industry
The contract signing (from left): Gitta Connemann (Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Energy), Stefan Dohler (CEO of EWE AG), Gunnar Groebler (CEO of Salzgitter AG) and Lower Saxony's Minister-President Olaf Lies. © EWE / Gerd Markert Photography
“We have resolved a chicken-and-egg dilemma and made a significant business decision,” says Gunnar Groebler, CEO of Salzgitter AG. Without initial supply contracts, a German hydrogen economy will not develop. However, the hydrogen ramp-up “still faces significant hurdles.” Comprehensive political measures are still needed to close the cost gap and minimize business risks. “Otherwise, this contract will remain an exception,” Groebler concludes.
EWE construction site in Emden: Here, the 320-megawatt plant for the production of green hydrogen for the climate-friendly steel production of Salzgitter AG is being built. © EWE / Ludwig Freytag
According to its own statements, EWE is consolidating key parts of the hydrogen value chain – from production and transport to storage and delivery. As part of the major IPCEI project "Clean Hydrogen Coastline," electrolysis, storage, and pipeline infrastructure is being developed in Northwest Germany. A functioning hydrogen economy strengthens "Europe's industrial resilience, makes us less dependent on fossil fuel imports, and helps to keep energy competitive in the long term," says EWE CEO Stefan Dohle. He adds that this contract demonstrates that supply and demand for green hydrogen can be aligned. It is a milestone, but not the end goal. "Now we must seize this momentum, initiate further industrial partnerships, and build the market step by step."
The federal government and the state of Lower Saxony are supporting the transformation of steel production in Salzgitter with more than one billion euros.
Photo above
EWE supplies 10.000 tons of hydrogen annually to Salzgitter AG for the production of green steel. © Salzgitter AG
