Germany is offering €2.6 billion in financing to steel mills in the state of Saarland to enable them to produce zero-emission steel. During a visit to the state of Saarland, German Economy Minister Robert Habeck announced the planned financing for this important transformation of the steel industry. Habeck made the commitment at a meeting with state minister Anke Rehlinger and plant representatives.
The €2.6 billion grant will be directed to the state's main steel operations, Dillinger Hütte, Saarstahl and Rogesa. These three businesses operate under the framework of Staar-Holding Saar (SHS). The funding commitment will be sanctioned by European Union competition rules, the sources said.
The recycling project aims to reduce damage by making steel production climate neutral by 2045. To achieve this goal, Dillinger and Saarstahl reported that the use of hydrogen and a focus on recycling steel scrap are at the forefront. Given the financing conditions, plans for the construction of a direct reduction plant and two electric arc furnaces at the plants in Dillingen and Völklinge will begin this year.
Stefan Rauber, Chairman of the Board of SHS and CEO of Dillinger and Saarstahl, said: "This is a very important action that will enable us to make a historic transition for the Saarland steel industry. The Group aims to produce up to 3.5 million tons of green steel per year from 2027/2028. The public funding now announced is critical for the estimated investments, which will amount to around €3.5 billion."
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