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Saarstahl relies on the green light: 4.6 billion for a low-CO2 future!
In Saarland, the steel industry is being converted through extensive investments in order to produce with less CO2. Current developments and challenges are the focus.
Saarstahl relies on the green light: 4.6 billion for a low-CO2 future!
The steel industry is currently booming – in the truest sense of the word. Construction work at Saarstahl in Völklingen and Dillingen is progressing according to plan, and CEO Stefan Rauber is optimistic. The conversion to lower-CO2 steel production should now make rapid progress. “We are going full throttle,” says Rauber, and the anticipation of the first large components for the new direct reduction system, which are scheduled to arrive next year, is clearly noticeable. The total investments of over four billion euros remain unchanged and are largely dependent on funding from the federal and state governments, as SR.de reports.
Interestingly, Rauber is calm about Arcelor Mittal's withdrawal from more climate-friendly steel production. On the contrary – it could improve the sales situation for Saarstahl. Despite a tense business situation with a loss of around 47 million euros last year, he emphasizes that “green” steel has a future. In Dillingen you can look back on an annual surplus of 273 million euros, even if this has fallen significantly. The pressure from cheap steel from Asia remains high, but expectations for 2024 are optimistic, especially due to the targeted savings at Saarstahl.
Competition and challenges
The challenges for the entire industry should not be underestimated. “A reduction in electricity prices is necessary in order to remain internationally competitive,” demands Rauber, and measures against dumping steel from the Far East are also essential. According to WV Stahl, the steel industry in Germany has immense importance for the economy, with around 70% of steel produced in integrated steelworks. But the industry is under pressure - the CO2 emissions from the blast furnace route are around 1.7 tons of CO2 per ton of crude steel.
A way out of this precarious situation could be the increased use of green hydrogen. ArcelorMittal already has ambitious plans in this direction. By 2030, up to 3.5 million tons of steel will be produced using green hydrogen at the Bremen and Eisenhüttenstadt locations. The goal is CO2 savings of over 5 million tons, provided hydrogen is available. Here it is clear to see that hydrogen-based direct reduction (DRI) technology plays a key role in reducing emissions to almost zero ArcelorMittal explained.
A look into the future
In order to remain competitive, all players must pull together. Today, a modern steelworks must also keep an eye on the issues of sustainability and environmental protection. In Germany, the steel industry not only faces major challenges, but also enormous opportunities. The use of hydrogen in steel production is a promising technology that will also be crucial in international competition. Experts expect these technologies to become increasingly widespread in order to achieve the EU's climate goals.
If the conversion of the steelworks in Saarland progresses as planned, it will be a groundbreaking step not only for Saarstahl, but for the entire German steel industry. Finally, as the largest steel manufacturer in the EU, Germany also plays an important role in global value chains. It remains exciting to see whether companies can meet the challenges and set the course for a sustainable future.