SHS Group receives approval to build DRI and EAF plants in Saarland

Power4Steel project on schedule, bringing Dillinger and Saarstahl closer to climate neutrality

SHS – Stahl-Holding-Saar Gruppe (SHS Group), which includes Dillinger, Saarstahl, and ROGESA, has received official approval under the Federal Immission Control Act (BImSchG) for the construction and operation of key facilities for the Power4Steel project – a direct reduced iron (DRI) plant and two electric arc furnaces (EAF) in Dillingen and Völklingen (Germany). This is stated in the company’s press release.

The relevant permits were granted for the period 2024-2025, which is an important milestone on the road to green steel in the Saar region.

The DRI plant in Dillingen will supply low-CO2 iron ore pellets to two plants in Dillingen and Völklingen. In the new electric arc furnaces, these pellets will be used together with scrap metal to produce steel with a reduced carbon footprint.

Dillinger and Saarstahl are the first steel companies in Germany to receive full approval for key elements of their large-scale decarbonization project. The successful and rapid completion of the permitting process was made possible by close cooperation with local authorities, municipalities, and early public engagement.

According to SHS CEO Stefan Rauber, these permits bring the companies closer to their goal of achieving carbon neutrality by 2045. By the early 2030s, more than 70% of steel is planned to be produced with minimal CO2 emissions.

The Power4Steel project remains on schedule. According to project manager Dr. Michael Bott, thanks to high-quality planning and support from local authorities, the permitting process was completed in record time.

As GMK Center reported earlier, Germany reduced steel production by 10.8% y/y – to 14.43 million tons in January-May 2025. Oxygen converters produced 9.7 million tons of steel (-14.2% y-o-y), and electric arc furnaces produced 4.73 million tons (-2.9% y-o-y).