Despite the budget crisis triggered by the KTF ruling, Federal Economics Minister Robert Habeck has promised the Saarland steel industry €2.6 billion for its "Pure Steel+" transformation project during a visit to Völklingen. This would cover a large part of the total costs estimated at €3.5 billion. Based on the use of hydrogen, electric steel and scrap recycling, the producers Dillinger and Saarstahl AG want to become climate-neutral by 2045.
In the presence of Anke Rehliner, Minister President of Saarland, and numerous representatives of the two companies, Habeck announced the funding amount of €2.6 billion. The distribution is subject to final approval by the EU competition authority.
This year, the companies began planning a hydrogen-based direct reduction plant and two electric arc furnaces (EAF) in Dillingen and Völklingen. The production of up to 3.5 million tons of green steel per year is planned from 2027/2028. By 2030, 55% of CO2 emissions are to be reduced, which will require the conversion of 70% of total production. The subsidies promised by Habeck are "absolutely essential" for the planned investments of around €3.5 billion.
Green steel despite the crisis?
Stahl-Holding an der Saar is now the third major steel location in Germany to receive a funding commitment for the green transformation based on hydrogen. In July, the European Union approved €2 billion in funding promised to Thyssenkrupp Steel, and Habeck had already promised Salzgitter AG €1 billion in April.
In view of the uncertainty that has prevailed among many market players since November 15 regarding the funding of their planned hydrogen and transformation projects, the announcement should be a positive signal for employees in the Saarland steel industry. Stefan Rauber, Chairman of the Management Board of SHS - Stahl-Holding-Saar, was delighted with the news. A historic production changeover is now possible.
The companies of SHS - Stahl Holding-Saar report that they produce around 5 million tons of steel every year. As one of the largest employers in the industry, the management holding company employs around 14,000 people and generates sales of around €7 billion.
