By Mary de Wet

 

Salzgitter AG said Monday that Volkswagen AG will become one of its first customers for the low carbon-dioxide steel it aims to produce in three years.

 

On low carbon-dioxide steel:

 

Salzgitter is seeking to reduce carbon-dioxide emissions in its steel production by using green hydrogen and renewable energies instead of carbon-based blast furnaces.

"Hydrogen electrolysers, direct reduction plants and electric furnaces are being built in Salzgitter for this purpose," the company said.

Salzgitter is planning a new production route at its headquarters in Lower Saxony that would achieve commercial output at the end of 2025.

The steel producer's goal is to reduce carbon-dioxide emissions by more than 95% by 2033.

"Last year, Volkswagen AG processed sample quantities of CO[2]-reduced steel from the Salzgitter AG for the first time. This is produced on the scrap-based electric steel route in Peine and has a 66 percent reduced CO[2] footprint. This year, Volkswagen plans to purchase a further 3,000 tonnes."

 

In addition, the Volkswagen Group has made the steel residues from production at its main plant in Wolfsburg available to Salzgitter, which melts them down, processes them into new steel products and delivers them to Wolfsburg for car production again.

 

Write to Mary de Wet at mary.dewet@dowjones.com

 

(END) Dow Jones Newswires

March 21, 2022 07:32 ET (11:32 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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