Salzgitter has entered into an agreement to build a direct reduction unit

German steel producer Salzgitter has entered into an agreement with a consortium comprising Tenova, Danieli and DSD Steel Group to build a direct reduction facility (DRI plant) at Salzgitter Flachstahl’s site in Lower Saxony, Germany. It is reported on the company’s website.

Thanks to Energiron’s ZR Direct Reduction technology, which allows it to work with both hydrogen and natural gas in any mixing ratio, the plant will be able to use hydrogen to replace coal in steelmaking in 2026.

The plant is the largest site in the first stage of the SALCOS – Salzgitter Low CO2 steelmaking transformation program. The goal is to produce steel with almost no carbon emissions, the program is implemented in three stages.

The plant, with a production capacity of 2 million tonnes of direct reduction iron (DRI) per year, will be the largest part of the plant as part of the first phase of the transformation project. The first stage will be put into operation at the end of 2025 and consists of a direct reduction unit, an electric arc furnace and an electrolysis unit for the production of hydrogen with a capacity of 100 MW. The conversion of steel production at the plant should be completed by the end of 2033.

«Already in 2026, we will be able to produce significant volumes of green steel and make it available to our customers,» noted Gunnar Groebler, CEO of Salzgitter AG.

According to Italy’s HydroNews, Salzgitter is not the only international steel group which choose a solution developed by Danieli and Tenova. Last year, ArcelorMittal and Tata Steel decided to use Energiron’s technology to reduce the environmental impact of their steel plants.

As GMK Center reported earlier, in April 2023, Salzgitter got almost €1 billion in government funding for its SALCOS hydrogen-based steel project. The project was approved by the European Commission in October last year. The first phase includes about €700 million in federal funding and €300 million from the state of Lower Saxony. Salzgitter’s own, already approved contribution, is more than €1 billion.

  • Global Market

The EU’s requirement regarding the smelting and casting of steel will come into force in October

On 24 June, the European Union published a regulation on new safeguard measures concerning steel…

Wednesday June 24, 2026
  • Industry

Exports of flat steel from Ukraine fell to 695.1 thousand tonnes in January–May

In January–May 2026, Ukraine’s steel companies reduced their exports of flat-rolled steel by 3.1% compared…

Wednesday June 24, 2026
  • Global Market

Global pig iron production fell by 2.8% y/y in January–May

Global pig iron production for the period January–May 2026 fell by 2.8% compared with the…

Wednesday June 24, 2026
  • Global Market

SSAB Americas is launching a steel recycling project in the US

The steel company SSAB Americas, together with its partners The Greenbrier Companies and Alter Trading,…

Wednesday June 24, 2026
  • Global Market

British steel fabricators are calling for the new steel measures to be revised

The new quotas and import duties on steel introduced by the UK government to support…

Wednesday June 24, 2026
  • Industry

Ukrainian Railways has launched a programme to sell scrap in the form of worn-out carriages

In May, Ukrainian Railways (UZ) launched its previously announced programme to sell large quantities of…

Wednesday June 24, 2026