Salzgitter AG and EWE have signed a long-term agreement to supply green hydrogen to support the SALCOS® program, which aims to enable low-CO₂ steel production.
Under the agreement, EWE will supply 10,000 tons of green hydrogen annually from its 320-megawatt production facility in Emden, beginning in 2030. The contract, signed in Berlin, marks Salzgitter AG’s first major hydrogen purchase agreement and is expected to cover approximately 6.5% of the SALCOS® initiative’s hydrogen requirements. The agreement has an initial term of seven years.
The SALCOS® program aims to reduce CO₂ emissions from steel production significantly. The company estimates that using green hydrogen could support a nearly climate-neutral steelmaking process. In the interim, emissions can be reduced by around 60% by using natural gas in direct reduction facilities. Salzgitter AG also plans to produce approximately 9,000 tons of hydrogen annually through its own 100-MW electrolysis plant.
Industry participants continue to call for supportive regulations and policy measures to improve the competitiveness of renewable hydrogen. Key proposals include extending electricity price compensation for electrolyzers and revising criteria governing the use of green electricity in hydrogen production.
EWE is developing hydrogen infrastructure across the value chain, from production to delivery. The agreement remains subject to RFNBO certification requirements and to European regulations governing electricity sourcing and additionality criteria.
Both companies said the partnership reflects their commitment to supporting industrial decarbonization and the development of a resilient hydrogen market in Europe.
Why it matters for green steel: The agreement represents another step toward integrating green hydrogen into steel production. As steelmakers work to reduce carbon emissions, securing long-term hydrogen supplies will be critical to scaling low-carbon manufacturing. The deal also highlights the growing importance of hydrogen infrastructure and supportive policy frameworks in advancing industrial decarbonization.