German steel manufacturer Salzgitter has decided to delay the subsequent phases of its major green project, Salcos, by three years to 2028-2029 due to unfavorable market conditions. The total cost of the project is approximately €2.5 billion. The currently launched first phase includes commissioning a 100-megawatt (MW) electrolyzer, constructing a direct reduction plant, and an electric arc furnace. Starting from 2027, this will replace an existing blast furnace and converter, producing around 2 million mt of steel.
Salzgitter steel mill currently has an annual crude steel capacity of 7 million mt. The ultimate goal of the project is to replace all three blast furnaces by 2033 and achieve a 95% reduction in carbon dioxide emissions.