Path cleared for the steel transformation

In its press release today , the European Commission officially announced its approval of the EUR 2.6 billion German aid measure to support SHS – Stahl-Holding-Saar in decarbonizing its steel production through the use of hydrogen.

SHS – Stahl-Holding-Saar is extremely pleased about the EU’s approval of the planned EUR 2.6 billion in funding from the Federal Government and the Saarland State Government. Robert Habeck, German Minister for Economic Affairs and Climate Protection, had mentioned the sum during a previous visit to Saarland, and the EU’s decision has now cleared the way for one of the most ambitious transformation projects in Europe.

“This is momentous news for Saarland’s steel industry. What we are doing now with Saarstahl and Dillinger is not only a victory for climate protection but also superb news for our customers. With our plans, we are pioneering green steel production in Germany and Europe,” said Stefan Rauber, Chairman of the Management Board of SHS – Stahl-Holding-Saar GmbH & Co. KGaA and Chairman of the Board of Management of Aktien-Gesellschaft der Dillinger Hüttenwerke and Saarstahl AG.

Background information: Starting in 2027/2028, SHS – Stahl-Holding-Saar and its subsidiaries, Dillinger, Saarstahl and ROGESA, plan to produce up to 3.5 million tons of green steel annually. To enable carbon emissions to be cut by 55 percent by as early as 2030, the first step will be to convert up to 70 percent of production (approx. 3.5 million tons of crude steel) to a climate-friendly process.

The public funding that has now been announced is essential to managing the required investments of around EUR 3.5 billion. Plans call for up to 4.9 million tons of carbon-reduced steel to then be produced annually in Saarland.