Germany's second-largest steel producer delays green steel project
Germany's second-largest steel producer, Salzgitter, has decided to delay its decision on the second phase of its green steel production by three years. This is due to macroeconomic conditions.
Salzgitter was to allocate €2.5 billion for these environmentally friendly measures, of which €1 billion came from subsidies. Construction of a 100 MW electrolyzer for hydrogen production will be completed by 2027—the first stage of the plan.
Additionally, a gas reduction installation and an arc furnace will be built, which should lead to a 30% reduction in CO2 emissions with an annual production of 2 million tonnes of steel.
Later stages, which were supposed to reduce emissions from steel production – one of the most polluting industrial processes – by up to 95%, will be delayed because hydrogen markets are developing more slowly than expected, says Salzgitter CEO Gunnar Groebler.
According to Reuters, decisions were to be made next year, but now it can be expected that this will not happen before 2028/2029.
This spring, ArcelorMittal abandoned plans to convert two plants in Germany to produce green steel . The reasons were a lack of customer interest and high electricity prices.
Journalist, graduate of political science at the Faculty of Law and Administration of the Jagiellonian University. Associated with the media for over 40 years. After graduating in 1982, he worked on the editorial staff of "Gazeta Krakowska" and "Kurier Polski." A member of the editorial team of "Przegląd Techniczny." He has published articles in "Student," "Przekrój," and "Życie Literackie." Since the economic and political transformation, he has been associated with Reuters as a correspondent in Krakow for over 20 years. For the next three years, he conducted practical classes with students at the Institute of Journalism, Media, and Social Communication of the Jagiellonian University. Since December 2021, he has joined the PTWP Group and works for the WNP.PL portal. His main professional interests include economics and politics at the global level and the participation of Polish business in this field, particularly companies listed on the Warsaw Stock Exchange. Winner of the "Ostra Pióra" award, granted for "spreading economic education" by the BCC, as well as the Golden Pear - a journalistic award of the Małopolska Branch of the Association of Journalists of the Republic of Poland.
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