German steel manufacturer Salzgitter has begun decarbonizing its subsidiary Hüttenwerke Krupp Mannesmann (HKM) by signing a contract with Tenova for the design, supply and installation of an electric arc furnace at a steel mill in Duisburg, Salzgitter announced on July 29. ,
,The new furnace will be the largest in Germany and the second largest in the European Union. Its annual production capacity will be 2.5 million tons, and the planned volume of crude steel output will be 2 million tons. The implementation phase will begin in August this year and is expected to end in 2029. Raw material
Whether it is ferrous scrap or direct reduction iron (DRI), it will be continuously fed into the system via a conveyor belt, and the heat of the exhaust gases will be used to preheat the scrap metal, further reducing recycling costs. According to Salzgitter, emissions will be significantly lower compared to conventional EDPS.
To learn more about Salzgitter's decarbonization initiatives and other steel producers around the world, check out McCloskey's Global Green Steel review.
Salzgitter acquired 100% of HKM shares in the first half of July, completing the transfer of ownership from other German steel producers Thyssenkrupp and Vallourec.
The project will receive financing in the amount of 200 million euros from the Federal Government and the state of North Rhine-Westphalia within the framework of the Federal Financing of Industry and Development program. The program of action to combat climate change.
"Thanks to the construction of the electric arc furnace, HKM will be directly integrated into the transformation strategy of the Salzgitter Group towards low—carbon steel production," said Gunnar Grobler, Chairman of the Executive Board of Salzgitter. "With the electric arc furnace, we are laying the foundation for sustainable and competitive steel production at HKM and strengthening our position as a leading supplier of environmentally friendly steel to production value chains."
Over the past few years, Salzgitter has signed a number of agreements on the supply of environmentally friendly steel to end-users, including companies in the automotive industry and the home appliance segment. Company
Salzgitter does not operate in the spot market for crude steel, but has reportedly received premiums of about 300 euros/ton for low-CO2 hot-rolled coils (HRC) at its pilot plant.
Recent spot deals for small quantities of crude HRC steel from other European steel producers have been concluded with premiums ranging from 150 to 180 euros per ton.
,New investments in decarbonization and ETS, ,
,Salzgitter's statement on investments in the EAF comes at an important time amid the European Commission's recent review of the Emissions Trading System (ETS)
