Salzgitter announces tender for hydrogen supply for steel production

German steelmaker Salzgitter is announcing a tender for hydrogen supply for the first time for the initial phase of its SALCOS (Salzgitter Low CO2 Steelmaking) transformation program. This is stated in the company’s message.

As part of the first phase of the SALCOS expansion, Salzgitter will be able to use up to 150 thousand tons of hydrogen per year at the Salzgitter plant. Part of this volume will be produced at its own 100 MW electrolysis plant at this site starting in 2026. The facility is currently under construction on the company’s premises and will have an annual production capacity of about 9 thousand tons.

The company plans to start external hydrogen supplies in 2027, subject to the connection to the German Hydrogen Core Network (HCN), or, in some cases, other routes may be implemented. Possible deliveries starting later will also be accepted.

As noted, companies can already register for the tender and submit their proposals in the further process.

Salzgitter also reported that specific hydrogen supplies have already been planned in cooperation with the first partners.

In April 2024, Salzgitter and energy company Uniper signed a preliminary agreement on the purchase and supply of green hydrogen. The hydrogen will be produced at Uniper’s large electrolysis plant, which is scheduled to be commissioned in Wilhelmshaven in 2028.

As GMK Center reported earlier, the European Commission has approved the allocation of about €3 billion of planned state aid to Germany for the construction of a hydrogen pipeline system in the country. The government plans to provide financial guarantees that will allow companies that will build and operate the €20 billion hydrogen network to obtain more favorable loans to cover initial losses at the production ramp-up stage starting in 2025.