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SPAETER Group and Salzgitter Flachstahl join forces to produce green steel

Anela DoksoBy Anela Dokso26/04/20233 Mins Read
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The SPAETER Group, a steel trading company founded in 1875, has partnered with Salzgitter Flachstahl GmbH to produce and deliver low carbon steel under the SALCOS – Salzgitter Low CO2 Steelmaking program.

The program aims to gradually shift the production of steel to hydrogen-based processes, with the goal of achieving virtually carbon-neutral production by 2033.

Salzgitter Flachstahl GmbH, a subsidiary of the Salzgitter Group, has been producing low carbon steel products using scrap-based electric steel methods. The new partnership with SPAETER Group will further enhance their green steel production capabilities, with the aim of meeting climate targets and contributing to the German economy’s transformation towards carbon neutrality.

Eike Brünger, the Managing Director of Sales and Logistics at Salzgitter Flachstahl GmbH, stated that the collaboration with SPAETER Group is evidence that the market for “green” steel is gaining traction in various customer sectors. This partnership is part of the Salzgitter Group’s “Partnering for Transformation” mission, which seeks to work with new partners to achieve climate targets.

Thorsten Zips, Chairman of the Management Board at SPAETER Group, emphasized the importance of producing green steel in line with their Spaeter 2030 strategy, which is committed to achieving a carbon-neutral economy as soon as possible. He expressed his pleasure in being able to offer a wide range of green steel products to customers as a reliable supplier.

With the collaboration, SPAETER Group customers will be able to procure SALCOS® green steel from all locations across the world. The steel trader will support its customers in optimizing the product carbon footprint (PCF) of the steel products they source.

The adoption of green steel production methods is essential in achieving the climate targets set by various governments and organizations. The SALCOS® program will contribute to the reduction of carbon emissions in the steel production industry, which is known for its high carbon footprint.

However, there are potential challenges to the production of green steel, including high costs and the limited availability of low carbon raw materials. The use of hydrogen in steel production requires large amounts of electricity, which may not be fully renewable in some regions. Additionally, there are concerns regarding the stability of hydrogen storage and transportation.

In conclusion, the partnership between SPAETER Group and Salzgitter Flachstahl GmbH is a significant step towards achieving the goal of carbon-neutral steel production. This collaboration will contribute to the reduction of carbon emissions in the steel production industry, with the aim of achieving a sustainable future.

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