Salzgitter AG’s announced that it signed a Memorandum of Understanding (MOU) with Anglo American to join forces in investigating the optimization of iron ore supplies for direct reduction. The have outlined that hydrogen production and electric arc furnaces (EAFs) are the companies future.
The companies have announced that the primary aim of the joint research is to minimize the CO2 footprint of steel production. The MOU covers an examination of the lowest possible CO2 process and Supply chains which will be studied to enhance the company’s processes.
Ulrich Grethe, Chairman of the Management Board of Salzgitter Flachstahl GmbH and member of the Group Management Board of Salzgitter AG said,
“With this project we continue to progress important milestones on the way to low CO2 steel production. In driving our SALCOS® technology concept forward, we aim to decarbonize steel production as efficiently and quickly as possible. We are delighted to be partnering with Anglo American, our long-standing major supplier of high-grade ores, for joint reflection and potential projects.”Ulrich Grethe, Chairman of the Management Board of Salzgitter Flachstahl GmbH and member of the Group Management Board of Salzgitter AG
In the process, Salzgitter Flachstahl’s carbon-based blast furnace route will also gradually be replaced, from the middle of this decade through to 2045 at the latest, with direct reduction plants that will initially be operated by natural gas and then flexibly with a steadily increasing proportion of hydrogen. Going forward, hydrogen production and the EAFs required for the new process route are to be operated exclusively using electric power from renewable sources. The transformation will allow CO2 emissions from steel production to be reduced by 95 percent by 2045.
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