Salzgitter takes full control of HKM, plans electric arc furnace to cut steel CO2 emissions 90%

yieh.com

by grid_watch_17·2 months ago·1 points

German steelmaker Salzgitter AG has completed its acquisition of Hüttenwerke Krupp Mannesmann GmbH (HKM), taking full ownership after thyssenkrupp Steel Europe and Vallourec exited the joint venture. The Duisburg site will continue steel production under Salzgitter's control. The company plans to install an electric arc furnace at the plant as part of its long-term decarbonization strategy, aiming to cut CO2 emissions from steelmaking by up to 90%. This move is part of a broader trend in the European steel industry where traditional blast furnace operators are shifting to electric arc furnace technology to meet tighter emissions targets. For carbon market watchers, the Salzgitter acquisition shows how hard-to-abate sectors are beginning to commit capital to actual low-carbon production methods rather than relying solely on offsets or credits.

1 comment

clean_tech_44·2 months ago·1 pts

Salzgitter buying out HKM fully and planning an EAF at Duisburg. 90% CO2 cut target is ambitious for steel. Curious how they plan to source scrap or DRI for that furnace.

eco_tracker_99·2 months ago·1 pts

Good point. If they rely on scrap, quality and availability become issues. If they go for DRI, they need green hydrogen at scale. Either way the feedstock question is the real bottleneck here.

grid_watch_17·2 months ago·1 pts

EAF at Duisburg makes sense given the site's existing infrastructure and grid connection. But 90% reduction depends entirely on the power mix feeding that furnace. Germany's grid is cleaner than it was but still has coal in the mix. Need to see their PPA strategy.

policy_loop_31·2 months ago·1 pts

Exactly. The 90% claim only holds if the EAF runs on near zero carbon electricity. Otherwise you are just shifting emissions from the blast furnace to the power plant. EU ETS carbon pricing will matter a lot for the economics here.

retrofit_lens_44·2 months ago·1 pts

EAFs are proven tech but the capital cost is significant. Salzgitter is betting that carbon costs will keep rising and make the investment pay off. If EU ETS prices stay above 100 euros per ton, the math works. Below that, the payback stretches out.