Salzgitter AG and Anglo American cooperate in optimizing iron ore supplies for low CO2 steel production

04.08.2021 | Press release of Salzgitter AG


Memorandum of Understanding for joint research and further development of process and supply chains

Salzgitter AG’s subsidiary Salzgitter Flachstahl GmbH has signed a Memorandum of Understanding (MOU) with Anglo American to join forces in investigating the optimization of iron ore supplies for direct reduction. Anglo American is one of the world’s leading mining groups. The primary aim of the joint research activities is to minimize the CO2 footprint of steel production. The MOU also covers an examination of the lowest possible CO2 process and Supply chains.

Ulrich Grethe, Chairman of the Management Board of Salzgitter Flachstahl GmbH and member of the Group Management Board of Salzgitter AG said: “With this project we continue to progress important milestones on the way to low CO2 steel production. In driving our SALCOS® technology concept forward, we aim to decarbonize steel production as efficiently and quickly as possible. We are delighted to be partnering with Anglo American, our long-standing major supplier of high-grade ores, for joint reflection and potential projects.”

SALCOS® stands for “SAlzgitter Low CO2 Steelmaking” and is a transformation concept for the integrated steel production route. In the process, Salzgitter Flachstahl’s carbon-based blast furnace route will gradually be replaced over a period from the middle of this decade through to 2045 at the latest by direct reduction plants that will initially be operated by natural gas and then flexibly with a steadily increasing proportion of hydrogen. Going forward, hydrogen production and the electric arc furnaces (EAF) required for the new process route are to be operated exclusively using electric power from renewable sources. The transformation will allow CO2 emissions from steel production to be reduced by 95 percent by 2045.

The new facilities and production sequences place special requirements on raw material properties, their treatment processes and logistics.