German companies Saarstahl and Dillinger have secured financing in the amount of 1.7 billion euros for the Power4Steel project for the production of environmentally friendly steel.
German long products manufacturer Saarstahl and German flat products manufacturer Dillinger Group, subsidiaries of Stahl-Holding-Saar (SHS), have announced that they have raised 1.7 billion euros in financing for their Power4Steel transformation program. This funding ensures that the entire project is fully funded, enabling SHS to develop large-scale hydrogen-based steel production and achieve ambitious carbon reduction goals.
The Power4Steel initiative provides for the construction of a direct reduction unit (DRI) and two electric arc furnaces (EDP) at the SHS plants in Dillingen and Felklingen sites. These plants will replace existing blast furnaces and converters, marking SHS's transition to hydrogen-based low carbon steel production.
The package of 1.7 billion euros was organized by a consortium of leading national and international banks.
It includes:
Export credit agency (ECA) support from OeKB (Austria) and SACE (Italy),
SHS equity contributions and
Direct financial assistance from the German Federal Government and the Saarland Regional Government under the 2.6 billion Saarland steel industry transformation program. euro.
The main environmental goals, as well as part of the Power4Steel project, are:
Reduce carbon dioxide emissions by about 55% by 2030,
Full climate neutrality by 2045.
After commissioning, SHS aims to become the largest producer of environmentally friendly steel in its group of analogues, consolidating the transformation of the Saarland region. to a low-carbon industrial region.