Siemens Energy to build substation for Salzgitter AG’s SALCOS® transformation program

• Contract includes building a substation on Salzgitter AG’s premises to connect to the 380 kV “Salzgitter Industrial Line”
• Substation to secure electrical energy supply of the new SALCOS^® production facilities
• Another important step toward low carbon steel production

Salzgitter AG has commissioned Siemens Energy to build a new substation. The substation will be used for Salzgitter Flachstahl GmbH’s supply of power and enable switching to virtually carbon-neutral steel production.
 
The new production plant and processes under SALCOS^® - Salzgitter Low CO₂ Steelmaking require huge volumes of electrical energy that will be made available via a 380 kV line.
 
Ulrich Grethe, member of Salzgitter AG’s Group Management Board, and Gelem Del Mar, Vice President Sales Grid Technologies at Siemens Energy, have today signed the respective agreement. The scope of the contract covers a 380 kV gas-insulated switchgear, a 220 kV gas-isolated switchgear, substation auxiliary systems and the entire design engineering. In addition, Siemens Energy will provide four high voltage and medium voltage transformers for the first development stage of SALCOS^®.
 
The objective of SALCOS^® is to achieve virtually carbon-neutral steel production, implemented in three stages. The first stage will go online as early as year-end 2025, and steel production at the Salzgitter location will be virtually carbon neutral by the end of 2023. The SALCOS^® substation will be connected up via the Bleckenstedt Süd substation of TenneT TSO GmbH to the future 380kV industrial line that in turn will connect up Salzgitter with the Wahle-Mecklar line. Going forward, this powerful grid connection will allow Salzgitter AG to source the necessary volumes of power from renewable energies necessary.
 
Ulrich Grethe: “Our SALCOS^® program is already in the throes of implementation. Powering it with renewable energy is a key factor for success. We are delighted to have Siemens Energy as a strong partner at our side in these endeavors. Today’s signing of the agreement marks another important step for switching the steel location of Salzgitter to renewable energies for carbon-neutral steel production. It underscores our ambition of staying our course of being a leader in decarbonizing the steel industry.”
 
Gelem Del Mar: "Change doesn’t happen on its own. To achieve net zero emissions, we need innovations in many sectors and a reliable power grid as the backbone of the energy transition. Of the almost 25 percent of global energy consumption in industry, around seven percent is accounted for by the production of iron and steel. With this project, Salzgitter AG and Siemens Energy are jointly advancing the decarbonization of industry.”