Hydrogen shares development: ThyssenKrupp aims to slow down, Salzgitter remains steady, and Saarstahl progresses rapidly!
Federal Chancellor Friedrich Merz has called for a steel summit at the Chancellery on Wednesday, marking a new development in the country's push towards a greener steel industry. This summit comes amidst the cancellation of a hydrogen summit, which may not have provided answers, but the steel summit offers potential for progress.
The steel industry is making strides towards improvement and optimization in the field of green steel. ThyssenKrupp, one of Germany's leading steel manufacturers, is advocating for the free allocation of emission rights to be maintained for longer. They argue that without political adjustments, the costs of acquiring CO2 certificates could rise to over one billion euros, a burden that could ultimately sabotage the expansion of hydrogen plans.
Salzgitter, another prominent player in the steel industry, has expressed incomprehension at ThyssenKrupp's ideas, arguing that a delay in changes to the emissions trading system could punish those who have already taken early action. ThyssenKrupp, however, fears that rising costs could make the production of green steel using hydrogen too expensive.
In a positive development, the SHS Group, consisting of Dillinger HΓΌttenwerke, Saarstahl, and Rogesa, has signed a binding contract with the French company Verso Energy for the delivery of at least 6,000 tons of green hydrogen annually starting in 2029. This hydrogen will be produced using renewable energy-powered electrolysis and transported to Saarland for climate-friendly steel production. The hydrogen purchases cover about 5% of the total demand of the Saarland steel industry.
Significant investments are needed to set up the necessary facilities for green steel production using hydrogen. Verso Energy plans to invest several million euros in the construction of these facilities. ThyssenKrupp, too, acknowledges the high costs of producing green steel using hydrogen, but argues that these costs should not be a barrier to climate protection. Instead, they see rising costs for CO2 certificates as "deindustrialization."
The contract between the SHS Group and Verso Energy is a significant step towards the goal of climate-friendly steel production. As the steel summit approaches, it remains to be seen what further measures will be discussed to support the transition to green steel. The summit offers a promising opportunity to address the challenges and find solutions for the future of the steel industry in Germany.
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