Salzgitter picks Andritz to build 100-MW electrolysis plant

German steel maker Salzgitter AG (ETR:SZG) has selected Austrian technology group Andritz to build a 100-MW electrolysis plant which will produce green hydrogen to decarbonise steel production.

The green hydrogen plant will be located at the Salzgitter Flachstahl's site in the city of Salzgitter, Lower Saxony, and will feature pressurised alkaline electrolyser technology from HydrogenPro.

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The facility is slated for commissioning in 2026. It is expected to produce around 9,000 tons of green hydrogen per year, which will be used to produce green steel.

Andritz will serve as the engineering, procurement and construction (EPC) contractor.

The electrolysis plant is part of Salzgitter's SALCOS initiative which aims to achieve virtually carbon-free steel production. The initial phase of the programme is set to commence as soon as 2026 and will include a direct reduction facility, an electric arc furnace, along the 100 MW electrolysis plant. The final step in the transition to a virtually carbon-free steel production at the Salzgitter site should be completed by the end of 2033.

In May, the steelmaker agreed a pact to offtake green hydrogen from energy company EWE which is planning to install up to 400 MW of electrolysers at sites near the German North Sea coast.