Salzgitter AG plans to construct a new direct reduction iron (DRI) plant μDRAL, under its SALCOS project (Salzgitter Low CO2 Steelmaking) that can be operated with natural gas and hydrogen.
Production is slated to begin by the first half of 2022 with an annual capacity of close to 1000mt, noted Salzgitter in a statement on Monday. The directly reduced iron will be used in blast furnaces and electric arc furnaces to save blown coal.
Salzgitter will invest close to €13.6mn ($16.6mn) on this new construction with a 40pc backing by the Federal Environment Ministry. The company plans to implement hydrogen-based steel production in several stages by 2050 under the SALCOS project and expects to achieve 95pc less CO2 emissions.
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