Salzgitter AG Secures Long-Term Green Hydrogen Supply from EWE, Accelerating German Low-Carbon Steel Production

June 28, 2026

SolarQuarter Germany

Overview

Salzgitter AG, through its subsidiary Salzgitter Flachstahl GmbH, has signed a long-term agreement with German energy company EWE AG for the supply of approximately 10,000 tons of green hydrogen annually starting in 2030. This pivotal contract will underpin Salzgitter’s SALCOS (Salzgitter Low CO₂ Steelmaking) program, driving significant CO2 emission reductions in its steel production processes. The agreement is a critical advancement for Germany’s emerging hydrogen economy and the decarbonization of energy-intensive industries.

In Depth

Key Findings

Salzgitter AG, a leading German steel producer, has forged a long-term supply agreement with energy company EWE AG for approximately 10,000 tons of green hydrogen per year, commencing in 2030. This landmark deal is a cornerstone of Salzgitter’s innovative SALCOS (Salzgitter Low CO₂ Steelmaking) program, paving the way for substantial reductions in CO2 emissions from its steelmaking operations. The agreement is widely recognized as a significant step forward for industrial decarbonization within Germany.

Technical / Clinical Details

Salzgitter’s SALCOS program aims to replace traditional blast furnace processes with hydrogen-based direct reduction iron (DRI) technology. Green hydrogen will serve as the primary reductant instead of natural gas or coal, effectively bringing CO2 emissions from the steelmaking process close to zero. The annual supply of 10,000 tons of green hydrogen from EWE AG will provide the essential fuel for the initial phases of this new steel production methodology. This phased approach allows Salzgitter to systematically reduce its carbon footprint and transition towards sustainable steel production.

Background & Context

The steel industry is one of the most energy-intensive and carbon-emitting sectors globally, making its decarbonization an urgent priority. The German government has set ambitious climate targets and is actively promoting the production and utilization of green hydrogen. The partnership between Salzgitter and EWE aligns perfectly with these national objectives, serving as a concrete example of large-scale green hydrogen supply infrastructure development and expanded industrial hydrogen use. This initiative will also provide a crucial model for other energy-intensive industries seeking pathways to decarbonization.

Strategic Significance & Outlook

This long-term supply contract provides a robust foundation for Salzgitter to execute its plan of converting significant portions of its steel production to green hydrogen-powered processes by 2030. EWE is slated to produce this green hydrogen through large-scale electrolysis plants, leveraging renewable energy sources in northern Germany. This collaboration is expected to accelerate the development of Germany’s hydrogen economy and contribute to broader European decarbonization goals. Looking ahead, Salzgitter’s demand for green hydrogen is anticipated to grow further, potentially leading to additional supply agreements and infrastructure investments.

Source: https://solarquarter.com/2026/06/26/salzgitter-signs-long-term-green-hydrogen-supply-deal-with-ewe-to-advance-low-carbon-steel-production/

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