Salzgitter Gets Around $1 Billion in German Aid for Decarbonization
April 18 2023 - 11:06AM
Dow Jones News
By Pierre Bertrand
Salzgitter AG on Tuesday said that it received almost a billion
euros ($1.09 billion) in government aid for its low-carbon,
hydrogen-based steel production project.
The funding from the German government, to which the state of
Lower Saxony contributed 30%, will go toward the company's Salcos
project, the federal government said in a statement.
The assistance assures the financing for the first stage of the
project which is scheduled to be operational by the end of 2025,
Salzgitter said in a statement.
Salcos involves the construction of hydrogen-capable direct
reduction plant, an electric arc furnace and a 100-megawatt
electrolyzer plant for the production of 1.9 million tons of crude
steel, Salzgitter said.
Salzgitter will advance its Salcos project in two more stages
and intends, by 2033, to have built two direct-reduction plants and
three electric arc furnaces to replace its previous production
process based on coking coal.
The government aid adds to the more than EUR1 billion the
company had already earmarked for the project, the company
said.
Last month Salzgitter increased its anticipated budget for the
first phase of the Salcos project to between EUR2.2 billion and
EUR2.4 billion, up from between EUR1.5 billion and EUR2
billion.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
April 18, 2023 10:51 ET (14:51 GMT)
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