The additional funding provided by the Federal Government of Germany and the Lower Saxony state government is intended to cover a financing gap that emerged after certain previously planned funding components were withdrawn. Berlin’s Ministry of Economic Affairs stated that the additional support is aimed at securing the project’s implementation timeline rather than expanding its scope. Under the financing model, 70% of the burden is borne by the federal government and 30% by Lower Saxony.
The additional funds are intended to secure the first phase of the SALCOS program, which has been in the implementation stage since late 2023. The first facility is scheduled to come online in 2027. As part of the transformation, coal-fired blast furnaces are to be phased out and replaced by a new production system that will initially operate on natural gas and later transition to green hydrogen.
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