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The award of the contract marks a further, decisive milestone on the way to low CO2 steelmaking at the Salzgitter location and for the Salzgitter group.

The aim of SALCOS is to achieve near to CO2-free steel production, which will be implemented in three stages. The first stage will go into operation as early as the end of 2025 and consists of a direct reduction plant, an electric arc furnace and a 100 MW electrolysis plant for hydrogen production. By the end of 2033, the transformation of the steel production at the Salzgitter site shall be completed, far ahead of regulatory requirements.

The SALCOS program is already in the midst of implementation: The financing of stage 1 of SALCOS® has been secured through subsidies from the Federal Republic of Germany and the State of Lower Saxony totalling around € 1 billion, as well as through substantial own funds of Salzgitter AG amounting to over € 1 billion. Prior to this, an electric arc furnace had already been ordered as another important