The Salzgitter steel group is starting construction of an electrolyzer for hydrogen production. The 100 MW plant will be built near the new direct reduction plant. From 2026, it will supply 9,000 tons of hydrogen per year for lower CO2 steel production.
The laying of the foundation stone on February 12 marks the start of construction of one of Europe's largest electrolyzers to date. The Austrian technology group Andritz is responsible for the realization of the 100 MW plant. The electrolyzer is based on the pressurized alkaline electrolysis technology of the Norwegian manufacturer HydrogenPro.
The plant is divided into ten modules of 10 MW each and achieves a maximum production capacity of 20,000 cubic meters of hydrogen per hour, Dr. Alexander Redenius, hydrogen expert at Salzgitter, told H2News in September. The installation will take place in a purpose-built hall in the immediate vicinity of the new direct reduction plant (DRI) and the electric arc furnace. This spatial integration is intended to minimize transport losses.
The new electrolyzer is part of the SALCOS program, which includes the DRI plant and the electric arc furnace as well as the necessary infrastructure for hydrogen storage and distribution. Salzgitter aims to offer the first products from transformed production on the market as early as 2026. The complete conversion to almost CO2-free steel production is to be completed by 2033.
In-house production covers 5 percent of the DRI's requirements
The Tenova LOI DRI plant, which was launched at the end of 2023, is designed for an annual capacity of two million tons. Initially, the steel group plans to operate it with a flexible mixture of natural gas and hydrogen, which, according to the company, will enable a CO2 reduction of around 60 percent compared to the conventional blast furnace route. Salzgitter intends to gradually increase the proportion of green hydrogen as soon as additional quantities are available from external suppliers or the hydrogen core network.
"We are doing our homework with this plant for on-site hydrogen production. Now it is up to politicians to create suitable framework conditions for green production. Competitive grid costs and a committed development of the hydrogen economy are particularly important here," explained Gerd Baresch, Managing Director Technology at Salzgitter Flachstahl GmbH.
Once commissioned, the electrolyzer's own production could cover around 5 percent of the DRI plant's H2 requirements. From 2027, Salzgitter anticipates a total requirement of 150,000 tons per year. The Group will therefore also be dependent on imports with its electrolyzer, which is why it initiated a first round of tenders for hydrogen supplies in June 2024. The connection of the Salzgitter plant to the core network, originally planned for 2027, will probably not be realized until 2029, Dr. Redenius said in the interview.
Andritz realizes major project
For Andritz, the start of construction represents an important reference case in the field of industrial water electrolysis. The integration of HydrogenPro's technology demonstrates the company's ability to implement complex industrial projects in the hydrogen sector. Executive Vice President Green Hydrogen Sami Pelkonen explained in a press release:
"Our extensive experience in the construction of large-scale plants provides us with a solid foundation for the realization of this innovative project. It fits perfectly with our long-term growth strategy, which focuses on decarbonization and supporting our customers like Salzgitter in managing their green transition."
