Climate Protection at Salzgitter AG

The Salzgitter Group takes responsibility for the challenges posed by climate change. Climate protection is therefore a key element of the “Salzgitter AG 2030” strategy. By 2026, we intend to have laid the foundation with the first step of our SALCOS^® program to make it technically feasible to reduce our Scope 1 and Scope 2 CO₂e emissions by 30 % compared with 2018. The target is to halve emissions by comparison with 2018 by 2030 as further parts of the program come on stream.

Our Science Based Targets (SBTs) consist of both short-term targets and long-term net zero targets across all three Scopes. Our targets are intended to put us on the required path to meet the 1.5°C target defined in the Paris Climate Agreement. In defining our short-term targets, we opted for the earliest possible year of 2028 in accordance with the SBTi. By then we aim to achieve a 30 % reduction in emissions for our hot-rolled steel products based on the carbon intensity of Scopes 1 and 2. The Group’s Scope 1 and 2 emissions are to be cut by 33.6 % by 2028 relative to the base year chosen of 2021. In the same period, our Scope 3 target provides for a 20 % CO₂e reduction for the Group’s main Scope 3 categories including “Purchased goods and services” and “Use phase of sold products”.

Human rights strategy
Environmental and energy guidelines
Supplier Code of Conduct
Code of Conduct
Stiftung KlimaWirtschaft
STIL Magazine: Circular Economy
KHS Sustainability Report

Measures in the area of climate protection

The majority of the Salzgitter Group’s emissions impacting the climate arise from the use of carbon-based energy sources in the blast furnaces of our integrated steelworks. The SALCOS^® program therefore takes the direct avoidance of these carbon emissions as its starting point (Carbon Direct Avoidance).

The aim of SALCOS^® is to convert steel production in Salzgitter to low carbon crude steel production in stages by 2033. In implementing the first stage, we wish to supply our customers with significant quantities of low carbon steel as early as 2026. The direct reduction plant with connecting electric arc furnace using the hydrogen from a 100 MWel electrolyzer will then account for roughly 30 % of SZFG’s primary steel production. At the same time, the first blast furnace will be shut down in 2026.

With the contract for the 100 MW pressurized alkaline electrolyzer awarded to ANDRITZ, all central SALCOS^® systems for the first stage have been commissioned since September 2023. With construction of Tennet’s transformer substation in Bleckenstedt / Süd also starting in September 2023, Salzgitter AG has taken a major step forward in terms of the timely supply of green energy. All the various elements making up the SALCOS^® program are thus in the manufacturing or construction phase. In this way, we are underlining our pioneering role in the decarbonization of industry.

The “μDRAL” direct reduction demonstration plant which went into operation on SZFG’s site in 2022 produced around 150 tons of direct-reduced iron for test purposes during its trial operation in the 2023 reporting year. Running the plant on 100 % hydrogen proved a success. Salzgitter Flachstahl GmbH (SZFG) thus reached a further milestone in its preparations for low carbon steel production. Hot commissioning with flexibly adjustable mixtures of natural gas and hydrogen was continued.

Low carbon steel slabs with a varied range of dimensions and grades have also been produced in the electric steel mill of Peiner Träger GmbH (PTG) since the end of 2020, then further processed to form hot and cold rolled strip at SZFG and supplied to our customers. SZFG was the first European steel manufacturer to receive conformity certificates in accordance with the VERIsteel standard for this process from TÜV SÜD. This method enables the product-specific carbon emissions during steel production to be verified, thus supporting the process of decarbonization. It shows that switching the steel production process from the conventional blast furnace route to the electric steel method driven by green electricity achieves a reduction of more than 80 %. The low carbon steel products have already been supplied to prestigious customers such as BMW, Daimler, BSH and Miele, among others.

Our Decarbonization approach

Our SBTs are an expression of our decarbonization approach that rests on four cornerstones:

Science based

Our targets are based on globally recognized scientific insights for meeting the 1.5°C target in the Paris Climate Agreement.

Performance-driven

To achieve our targets, we pursue measures to directly avoid CO₂e emissions, focusing on our goals in the sustainable decarbonization of every business unit.

Holistic

We take account of both our direct impact and that of the upstream and downstream value chain at home and abroad. In particular, we focus on the sustainable procurement of goods and on reducing CO₂e emissions over the use phase of our machinery.

Transparent

We are aware that transparency is an important element of trust and credibility. For that reason, we regularly communicate our progress and invite our stakeholders to engage in dialog.

SALCOS^® - We turn steel green

With SALCOS^®, we have joined forces with partners from industry and research to lay the foundations for virtually CO₂-free steel production. Central elements of the concept are electricity from renewable sources and its use in the production of hydrogen by means of electrolysis. This green hydrogen will replace the coal we currently use in the conventional blast furnace process. This will be possible with the help of so-called direct reduction plants, in which iron ore is reduced to iron directly in the solid state by hydrogen. This technology emits water vapor instead of CO₂.

Our SALCOS^® program thus pursues the Carbon Direct Avoidance approach, which stands for avoiding the generation of CO₂ in steel production from the outset. Overall, our approach enables us to reduce CO₂ emissions in steel production by over 95 %.

To program SALCOS^®

Contact us

Simon Kroop

Senior ESG Manager

esg@salzgitter-ag.de

Eren Yapmis

ESG Manager