Salzgitter to test new green pellet technology in collaboration with Binding Solutions

German steel company Salzgitter AG and British company Binding Solutions Ltd (BSL) have signed a memorandum of cooperation to test innovative cold-agglomerated pellets (CAPs) in a blast furnace and direct reduced iron (DRI) plant. This is stated in the company’s press release.

BSL’s technology has the potential to significantly reduce energy consumption and CO2 emissions in steel production.

CAP pellets, manufactured at BSL’s British technology center from various types of ore, will be delivered to Germany for testing at Salzgitter’s facilities. In particular, the pellets will be tested as part of the μDRAL project, the world’s first integrated DR plant that runs on both hydrogen and natural gas. Tests are also planned on blast furnaces at other company plants.

The aim of the tests is to demonstrate the effectiveness of innovative pellets in blast furnace production and to prove the competitiveness of BSL’s DR technology in industrial conditions. If successful, the technology will complement the SALCOS program, which is focused on decarbonizing steelmaking.

According to BSL estimates, their technology reduces energy consumption by up to 80% and CO2 emissions by up to 70% compared to traditional methods of sintering and roasting pellets. In addition to environmental benefits, the product also provides economic efficiency and production flexibility.

Salzgitter emphasizes that cooperation with technology leaders is a key element on the path to climate-neutral steel production. Binding Solutions, in turn, sees this cooperation as an opportunity to quickly take its technology to a new level and contribute to the sustainable development of European green metallurgy.

As a reminder, in early February 2025, Salzgitter began construction of one of Europe’s largest green hydrogen production plants. It is expected that from 2026, the Salzgitter plant will produce around 9,000 tons of hydrogen per year, which will be a key milestone in the implementation of the SALCOS® (Salzgitter Low CO2 Steelmaking) program to reduce CO2 emissions in steel production.