www.salzgitter-mannesmann-handel.de Salzgitter Mannesmann Stahlhandel GmbH Together with its Salzgitter Flachstahl GmbH subsidiary the Salzgitter Group is investing a triple-digit million euro sum in a new walking beam furnace and waste gas heat utilization system at the hot strip mill This will reduce energy consumption and enable the use of hydrogen In these special ovens in the hot strip mill so-called slabs are heated to up to 1,300 degrees Celsius These blocks of cast steel are the primary material that is then rolled out into steel strips (coils) Tenova Italimpianti was assigned with the realization of the walking beam furnace Salzgitter Flachstahl GmbH stated: "With the new furnace we will be reducing our energy requirements for slab heating in the hot flat steel area by up to 30 % This is another significant step towards reducing the CO2 footprint of flat steel products all the slabs produced at the Salzgitter site will be processed in the walking beam furnaces in future.” Hot combustion gases are generated when the slabs are heated in the walking beam furnace The associated thermal energy is converted into steam in an exhaust gas heat recovery system (Abgaswärmenutzungsanlage The DSD Power company was commissioned with the construction of the AWN "The entire project is all about energy efficiency The new AWN system makes decidedly efficient use of the combustion gases The high-quality steam generated in the process is then distributed throughout the plant," as Felix Iwanowski Project Management Hot Rolling Mill Salzgitter Flachstahl explained Thanks to its high energy efficiency the project is being funded by KfW The installation and commissioning of the new walking beam furnace is scheduled for completion in 2028 Thorsten MoellmannHead of Communication & BrandPhone: +49 5341 21-2300moellmann.t@salzgitter-ag.de Olaf ReineckePress SpokespersonPhone: +49 (0) 5341 21-5350reinecke.o@salzgitter-ag.de Salzgitter AG Eisenhüttenstraße 99 38239 Salzgitter | GermanyShow on the map Phone: +49 5341 21-01 Fax:     +49 5341 21-2727Contact form Our Standards: The Thomson Reuters Trust Principles., opens new tab , opens new tab Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. , opens new tabScreen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. © 2025 Reuters. All rights reserved Jörg Teichmann, Chief Procurement Officer of PowerCo SE, said: “We want to build a robust, European battery supply chain that also sets high standards in terms of sustainability. With the purchase agreements that have now been agreed, we are ensuring that our cell factory in Salzgitter is operated with green electricity. At the same time, we are making a contribution to the further expansion of renewable energies in Europe.” Alterric will supply PowerCo SE with a total of around 2.4 terawatt hours or 240 gigawatt hours of green electricity per year over the ten-year term of the contract. The electricity will come from four wind power projects in Lower Saxony, all of which are in independent commercial operation and therefore not eligible for state EEG subsidies. Delivery is scheduled to begin in 2025. “The off-take agreement between PowerCo and Alterric demonstrates how important the PPA model is for the industry to meet its high quality standards in electricity supply. The direct agreement between buyer and producer guarantees this quality. It is therefore imperative that the options currently being discussed to change the design of the electricity market in Germany will also enable such market-based solutions in the future,” explains Alterric Managing Director Dr. Frank May. Alterric develops, plans, markets and manages wind and hybrid parks and is one of the largest onshore green energy producers in Central Europe. Headquartered in Aurich, Lower Saxony, the company currently operates over 2,400 megawatts of installed capacity in its own portfolio. EnviTec Biogas AG will supply PowerCo SE with a total of around 650 gigawatt hours or 65 gigawatt hours of green electricity per year over the ten-year term of the contract. The electricity will come from a new solar park in Buckow / Brandenburg, which has been financed 100 percent by the von Lehmden Group and implemented in cooperation with EnviTec Biogas. The start of delivery has been agreed for 2025. PowerCo SE is a global battery cell manufacturer that was founded by the Volkswagen Group in 2022. Headquartered in Salzgitter, the company is responsible for the development and production of battery cells as well as the vertical integration of the value chain. PowerCo is currently building three cell factories with a total volume of up to 200 gigawatt hours per year: Salzgitter in Germany, Valencia in Spain and St. Thomas in Canada. Message Invalid character found in the request target [/news/detail/20250204-green-steel-salzgitter-s-ambitious-vision-for-the-industry?language_id\u003d1 ]. 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Reporting by Bernadette Hogg and Isabel Demetz; Editing by Richa Naidu Subscribe to newsletters Register for flow print magazine Edit your profile and preferences DOSSIER SUSTAINABLE FINANCE ISO2022 Agile working Corporate Bank website Coal-based blast furnaces have been core units in steel production for more than 100 years the industry is looking for ways to cut CO₂ emissions to align with net zero targets from regulators and customers flow’s Desirée Buchholz reports on how German steel- and technology company Salzgitter AG is leading the way towards decarbonising steel manufacturing rwd.flow.readingTime.error{{@root.language.[rwd.flow.readingTime.error]}} Steel demand is usually a good indicator of the global economy’s performance, as both tend to grow in tandem. So the outlook is positive, with global demand for steel forecast to rise from 1.9 billion tonnes in 2022 to reach around 2.06 billion tonnes by 2030.1 This increase is driven by population and economic expansion in India countries of The Association of South-Eastern Nations (ASEAN) region and Africa Meeting this target is important as steel will remain the backbone of the modern economy. “Despite a strong push on material efficiency strategies, such as vehicle lightweighting or extending the lifetimes of buildings, steel will continue to be an essential input to infrastructure, buildings and mobility systems,” the IEA writes in an April 2023 report.5 Steel also acts as “a critical enabler of the global energy transition” there is also a growing market demand from customers for low- or net-zero-emission steel As part of their net-zero transformation strategy the construction sector – which accounts for more than half of global steel demand – along with the automotive industry and mechanical engineering firms are increasingly looking to reduce their Scope 3 emissions “The steel sector is a crucial decarbonisation enabler for multiple industries as utilizing green steel reduces upstream Scope 3 emissions of corporates relying on steel a factor particularly relevant for the German economy,” says Lavinia Bauerochse Consulting firm Bain and Company expects between 15% and 25% of European steel production to be low carbon by 2030 which would equal between 25 million to 35 million metric tonnes that volume represents a US$20bn to US$30bn market (see Figure 1) Figure 1: European green steel market value Sources: Expert interviews: EUROFER; Company announcements; Bain analysis several global steel producers have now embarked on a green steel journey – a necessary but challenging destination which will require significant investments in process technology While there are several alternative pathways to producing low-emission steel economically viable alternative to the blast furnace Among the companies that aim to change this lack of options is Germany’s Salzgitter Group. Based in the town of the same name and with sales of €10.7bn in 20237 Salzgitter is one of the smaller steel players globally, but – according to the Green Steel Tracker published by campaigner The Leadership Group for Industry Transition (LeadIT), among the most ambitious in terms of timing and scope of net-zero ambitions.8 The company’s history dates back to 1858 when the Aktien-Gesellschaft Ilseder Hütte was founded in the small rural town of Groß Ilsede, in what was then the Kingdom of Hanover (northern Germany). Two years later, the company commissioned its first blast furnace, marking the start of its pig iron production.9 Salzgitter Group heralded the end of this era with the launch of its programme SALCOS® – or SAlzgitter Low CO₂-Steelmaking the company plans to gradually replace blast furnaces by so-called direct reduction plants and electric arc furnaces The latter uses the direct reduced iron pellets to produce the final steel The new process will be powered by electricity from renewable sources Until hydrogen is available in sufficient quantity the company will also rely on natural gas for a transition period to operate its direct reduction plant the conventional blast furnaces route – which is heavily reliant on coal to generate the high temperatures necessary to smelt the iron ore – will no longer be economically viable” “And we believe that the best approach for producing low-emission steel is by a direct avoidance approach in which iron ore is reduced to iron directly in its solid-state using hydrogen.” With this technology water vapour is emitted instead of CO₂ (see Figure 2) Figure 2: Green steel manufacturing at Salzgitter involving an annual capacity of 1.9 million tonnes of crude steel is scheduled to become operational no later than 2026 the project is expected to reduce Salzgitter's CO₂ emissions by 95% (see Figure 3) for the full production capacity (4.7 million tonnes/annum) in Salzgitter SALCOS was not scheduled for full implementation until 2045 – but customer demand the wish to shape future steel making technology as well as attracting talented personal for the transition – convinced management to substantially accelerate the process in 2022 recalls Zappe: “There are 250 employees involved in the transformation and 2033 is a year that many can relate too which makes it much easier to get the commitment and engagement needed to make the programme a success.” To secure the investment decision, Salzgitter group has already signed contracts with several customers – from automotive to household appliance – which will buy the low-emission steel as of 2026. For example, Volkswagen Group plans to use the low-CO₂ steel in important future projects.15 Being a pioneer in green steel is something Salzgitter group is proud of – particularly as the company is lifting the biggest investment in its history to enable this transition As the programme is approved by the European Commission as an Important Project of Common European Interest (IPCEI) it is backed by €1bn in public support funding from the Federal Government and the State of Lower Saxony The remaining €1.3bn is being sourced by the steel maker directly In a first-of-its-kind for Germany’s steel industry Salzgitter group signed two export credit agency- (ECA) covered green loan financings to support the decarbonisation of its steel manufacturing operations this April The financing package consists of a €300m export credit facility covered by SACE and a €200m export credit facility covered by the Oesterreichische Kontrollbank AG (OeKB) these facilities will help fund a portion of the Phase 1 of SALCOS® In support of the transaction Deutsche Bank acted as joint mandated lead arranger and lender as well as sole sustainability coordinator for which the bank ran the green loan classification process This was backed by a second-party opinion from ISS-Corporate which assessed and confirmed the alignment of the loans with the Loan Market Association’s Green Loan Principles and EU Taxonomy “Deutsche Bank has been a longstanding partner for us The bank was very supportive and pivotal to navigate us through the green loan process of the export credit agencies particularly with respect to the sustainability angle” “The export finance loans structured under Loan Market Association’s Green Loan Principles underpin Salzgitter’s ambition to act as pioneer in the decarbonisation of the steel industry in Europe,” says Stefan Götzinger “The use of ECA covered financings in this project is an important reference for future sustainable transition cases,” adds Markus Ohse “It highlights the strong rationale for using ECA financing also in developed markets to support clients’ sustainability objectives while benefiting from an attractive long-term financing solution.” While Salzgitter group has started its transforming journey it’s still early days for the shift to manufacturing CO₂ reduced steel at scale and affordably The company itself names three conditions which need to be fulfilled for SALCOS® to reach its full decarbonisation potential and each depends on support from the German government: Salzgitter will need 150,000 tonnes of hydrogen annually the on-site 100MW electrolysis plant is expected to only produce 9,000 tonnes of hydrogen which requires the remaining 141,000 tonnes to be sourced from external suppliers Salzgitter has now issued tenders for its hydrogen needs but deliveries can only begin in 2029 once the company is connected to the new hydrogen pipelines the German government is planning to build “The availability and the price of hydrogen is a key requirement for producing CO₂ reduced steel and it’s good to see that there is now a commitment for building this infrastructure,” says Zappe The idea behind so-called green lead markets is a concept developed by the German government to stimulate demand for CO₂ reduced steel which is currently significantly more expensive than conventional steel One possible incentive could be public procurement While the industry doesn’t want permanent support this may be needed until production ramps up and scale effects kick in “I expect to see a competition between green and grey (i.e and – provided market regulation such as CBAM enters into force as planned – I am very confident that the price differential will be competitive.” Find out more about our Corporate Bank solutions Choose your preferred banking topics and we will send you updated emails based on your selection flow magazine is published published annually and can be read online and delivered to your door in print * Our client magazine flow has already won several awards. For detailed information, please visit flow.db.com/magazine As the European Union pushes forward with an ambitious roadmap for a sustainable, net-zero emissions future, Claire Coustar, Head of ESG, FIC, Deutsche Bank explores how the steel industry can ensure it has the funding needed to support – and even drive – this green transition With the damaging effects of climate change and a rapidly rising population putting pressure on Tashkent’s ageing infrastructure, flow’s Clarissa Dann explores how Uzbekistan is modernising its historic capital’s water and sanitation systems. With Asia-Pacific a major sourcing hub for global supply chains, multinational companies need to ensure that their ESG targets in the region are met. flow’s Desirée Buchholz reports on how German industrial sensor manufacturer Pepperl+Fuchs established a sustainable factory in Vietnam that could serve as an ESG role model Copyright © 2025 Deutsche Bank AG, Frankfurt am Main Reporting by Bernadette Hogg and Isabel Demetz; editing by Richa Naidu , opens new tab of 184 million euros.Earnings before interests depreciation and amortization (EBITDA) came in at 445 million euros surpassing analyst expectations that saw it at 317 million euros according to a company-compiled consensus.($1 = 0.9683 euros)Reporting by Tristan Veyet Connecting decision makers to a dynamic network of information Bloomberg quickly and accurately delivers business and financial information The blast furnace at the Salzgitter AG mill in Salzgitter They had previously offered around €17.50 per share please click the box below to let us know you're not a robot Get the most important global markets news at your fingertips with a Bloomberg.com subscription. Please enable JS and disable any ad blocker ProductionSalzgitter begins construction of 100MW green hydrogen plant to supply low-carbon steelmakingThe electrolysers, supplied by HydrogenPro in partnership with Andritz, are scheduled to begin operations next year editing by Emma-Victoria Farr and Jason Neely The Volkswagen Group will just build one of the two production lines for battery production at its facility in Salzgitter The second line has been put on hold amid slowing demand for electric vehicles That the manufacturer is struggling has become more apparent in recent weeks - and has resulted in a few more changes Regular series production is scheduled to kick off in 2025 and the factory’s capacity could increase in the long term “The Group is sticking to its plan to establish its battery cell production with PowerCo at three locations in Europe and North America Series production in Salzgitter is scheduled to start in 2025 as planned The further expansion of production capacities will be driven forward flexibly and in line with demand it is also important to position PowerCo competitively overall and to ensure optimal plant utilisation Decisions have not yet been made,” a PowerCo spokesperson said VW announced last week that it may have to close plants to cut costs The works council now fears that the second line may not only be delayed but could be scrapped altogether the manufacturer officially cancelled its collective agreement and job security The current deal would have run until 2029 but will now expire at the end of the year layoffs for operational reasons will be possible it is still unclear where VW intends to cut back In view of the involvement of the state of Lower Saxony Hanover (VW Commercial Vehicles) and Emden as well as the component plants in Brunswick and the component plant in Kassel – and possibly the PowerCo factory in Salzgitter The smallest vehicle plant with 8,500 employees in production is located in Emden in northern Germany – the ID.4 and ID.7 are built there and Emden will become an exclusively battery-electric car plant from 2025 the German state of Lower Saxony has protected the site with its 20 per cent voting rights There have been repeated rumours of a possible sale of the Osnabrück components plant with its 2,300 employees – but not of a closure The fact that Audi is openly discussing the option of closing its factory in Brussels was already seen as a turning point Volkswagen announced that there will be a change of management Patrik Mayer and David Powels will effectively swap positions and responsibilities who has served on the Board of Management of the VW passenger car brand will thus become Chief Financial and IT Officer at Seat the finance department is undoubtedly of great importance Patrik Andreas Mayer has made a significant contribution to the structured and successful launch of the performance program And at the same time – under even more difficult conditions – provide impetus for competitive costs and structures It is also about leveraging the synergies within the Brand Group Core with the utmost consistency,” said Thomas Schäfer Member of the Board of Management of Volkswagen AG Brand Group Core & CEO of Volkswagen Brand I agree with the Privacy policy electrive has been following the development of electric mobility with journalistic passion and expertise since 2013. As the industry's leading trade media, we offer comprehensive coverage of the highest quality — as a central platform for the rapid development of this technology. With news, background information, driving reports, interviews, videos and advertising messages. Reporting by Vera Eckert; Editing by Miranda Murray and David Holmes German steelmaker Salzgitter AG could soon be acquired by the construction and waste management group Papenburg and ferrous scrap recycler TSR In an ad-hoc announcement released on 4 November the publicly-listed steel producer said it had been notified that Papenburg and Remondis subsidiary TSR were considering making a voluntary public takeover offer to Salzgitter shareholders It added it had not yet been informed about the range of the potential offer price The potential offer would be conditional on the consortium obtaining a stakeholding of at least 45 per cent plus one share including the 25.1 per cent stake already owned by Papenburg Hannover-based group GP Günter Papenburg AG is already the second-largest shareholder in Salzgitter AG and holds a blocking minority The state of Lower Saxony also holds a blocking minority with its stake of 26.5 per cent in Salzgitter AG When Papenburg’s shareholding first exceeded the threshold of 25 per cent of voting rights in Salzgitter AG in May 2022 the waste firm denied it had any plans to significantly increase its stake Papenburg had stressed its long-term strategic interest in the steel producer Papenburg said the transformation process launched by Salzgitter offered great opportunities Salzgitter aims to decarbonise its production process As part of its "Salcos” ("Salzgitter Low CO2 Steelmaking”) programme the group plans to completely transition its integrated steel mill in the city of Salzgitter to low-CO2 crude steel production by 2033 As part of this transformation, it is installing direct reduction facilities running on hydrogen and electric arc furnace (EAF) mills, which will successively replace the blast furnaces and converters. The company also plans to build a new large-scale shredder Ferrous scrap will consequently become a much more important raw material for the steelmaking process which also explains why TSR is interested in acquiring a stake in Salzgitter AG The Remondis subsidiary is the largest metals recycler in Germany and has recently ramped up its capacity expansion investments TSR started up a new processing facility with a throughput capacity of 450,000 tonnes per year in Duisburg in northwestern Germany can significantly reduce CO2 emissions when used as feedstock in steel production Remondis opened a second TSR40 plant in Amsterdam It is currently building two more TSR40 facilities in Hamburg and Magdeburg which are slated to start up in 2025 and 2026 Remondis has also recently expanded its footprint in the non-ferrous metal recycling segment TSR has acquired the non-ferrous foundry Siegfried Jost GmbH & Co a 100-year-old firm headquartered in Menden in northwestern Germany operates an electric smelter and specialises in the production of copper-based alloys It also trades in non-ferrous metals and processes production residues The acquisition of an electric smelter would complement the group’s recycling and trading expertise "We are expanding our portfolio with extensive know-how about the smelting process and the production of copper alloys from recycled raw materials We are thus in a position to even more efficiently close loops enabling resources to be optimally used and reused.” The copper alloys produced by Jost are mainly used in the sanitary and glass industries The company also processes production residues such as bottom ash these are transformed into high-value alloys such as brass Salzgitter’s stake in Hamburg-based copper producer Aurubis AG is therefore also likely of strategic interest for TSR and the Remondis group The steelmaker is currently the largest single shareholder in Aurubis There has recently been a lot of stock market speculation about a possible takeover of Aurubis AG. Dirk Rossmann, founder of the eponymous German drugstore chain, increased his shareholding in Aurubis to 15 per cent in October investment bank Goldman Sachs acquired more than 10 per cent of the shares in the Hamburg-based group Customer Service+49 7224 9397-701servicenoSpam@GO-AWAYeuwid.de Editorial Team+49 7224 9397-0recyclingnoSpam@GO-AWAYeuwid.com Get the latest news about developments and trends in the industry sent to you once a week free of charge by newsletter Sign up for our newsletter We use cookies and external services on our website others enhance your user experience or help us improve this website You can change your privacy settings any time by clicking privacy policy Necessary cookies are required for the correct functioning of the website Content from video and social media platforms is blocked by default. If access to these services is accepted, separate consent is no longer required when using them. You can find more information on the individual external services in our privacy policy. the Salzgitter Group is gradually converting its steel production to hydrogen-based processes The aim is to achieve almost CO2-free production from 2033 the classic blast furnace route is being replaced by production processes using direct reduction and electric arc furnaces Salzgitter Flachstahl is already able to supply its customers with CO2-reduced steel via the so-called Peiner Route The crude steel is produced there from high-quality steel scrap in an electric arc furnace and cast into slabs Lindab Steel AB: ‘Our ambition is to reach net-zero greenhouse gas emissions across the whole value chain by 2050 and we see Salzgitter as a contributing partner on our journey By signing the MoU we want to acknowledge Salzgitters ambitions with the SALCOS® programme and also include SALCOS® to our portfolio of CO2 reduced steel for future demands.’ Sales Director at Salzgitter Flachstahl GmbH: ‘The MoU with Lindab is further proof that our SALCOS® programme is the right approach to reducing the CO2 footprint of steel and that this is being recognised by the various customer groups Interest in this climate-friendly steel among our customers and partners continues to grow and we are pleased to be able to support them in the green transformation of their products.’ Thorsten MoellmannHead of Communication & BrandPhone: +49 (0) 5341 21-2300moellmann.t@salzgitter-ag.de Thommy PsajdSourcing Director, Lindab Steel ABTelephone + 46733052638thommy.psajd@lindab.com An economic recovery that has failed to materialize and an economic environment marked by high imports and uncompetitive energy costs weighed on the business performance of Salzgitter AG’s steel-related activities in the 2024 financial year Running counter to these developments were the earnings contributions from the Technology Business Unit our Aurubis AG participation as well as measures to support liquidity and earnings the scope of which we once again expanded notably in the past financial year Adjusted for extraordinary items totalling € - 406 million Salzgitter AG generated positive earnings before taxes of € 109 million The depreciation and restructuring expenses will relieve future periods The Salzgitter Group’s external sales decreased to € 10.0 billion (2023: € 10.8 billion) due to a decline in average revenues for steel products and a weak order book in the Steel Processing Business Unit EBITDA dropped to € 445 million (2023: € 677 million) and earnings before taxes to € - 296 million (2023: € 238 million) The results include expenses of € 406 million for restructuring A contribution of € 184 million from the participating investment in Aurubis AG (IFRS accounting; 2023: € 40 million) accounted for at equity bolstered earnings Based on an aftertax result of € - 348 million (2023: € 204 million) earnings per share was calculated at € - 6.51 (2023: € 3.70) The return on capital employed (ROCE) amounted to - 3.4 % (2023: 5.6 %) Net financial debt grew to € - 574 million (2023: € - 214 million) due to increased investing activities for the green transformation The Executive Board and Supervisory Board will put forward a proposal to the Annual General Meeting of Shareholders on May 22 2025 to distribute dividend of € 0.20 per share There is still no end in sight to the stagnation of the German economy in spite of the planned special funds although the economic stimulus measures put in place by the new federal government might have a positive impact as from the second half of 2025 particularly with regard to the prospects for exports due to the statements on trade emanating from the new US government our expectations for the Salzgitter Group in the financial year 2025 are as follows: “The economic challenges in Germany and the world show how important it is to systematically implement our strategy We are forging ahead with futureproofing Salzgitter Group’s position and the measures we have implemented are bearing fruit We continue to rigorously implement our SALCOS® transformation program we are excellently positioned to make the right decisions at the right time in a controlled manner and without losing sight of market developments We assume that the underlying conditions will remain challenging Our expectations of policy makers to finally ensure significant reduction in energy costs “We are focusing on the transformation and strengthening the competitiveness of Salzgitter AG we have achieved a positive pre-tax result before extraordinary items of € 109 million our net financial debt has turned out lower than expected This shows that our measures are having an impact We have added to our current “Performance 2026” program and introduced measures to further improve our business units on a lasting basis We have also initiated an economic program to support liquidity and earnings over the short term These markers represent important investments in our future 2024 was a year of important progress: We successfully completed the sale of Mannesmann Stainless Tubes Our Technology Business Unit generated a record profit and our participating investment in Aurubis AG delivered a significantly higher contribution to earnings than in previous years.” Key data Financial year 2024 Annual Report 2024 (including non-financial Report) Presentation Annual press conference 2025 (currently only available in German) Video: recording of the Annual Press Conference 2025 Video: Highlights of the financial year 2024 Video: recording of the Analyst Conference on the results of the FY 2024 Image material for the press release financial year 2024 (JPG, 1.3 MB) The complete report released on the results of the financial year 2024 can be viewed at:https://www.salzgitter-ag.com/en/investor-relations/news-and-publications.html​​​​​​​ Markus Heidler Head of Investor Relations Phone: +49 (0) 5341 21-1852heidler.m@salzgitter-ag.de Thorsten Moellmann Head of Group Communication & Brand Phone: +49 (0) 5341 21-2300moellmann.t@salzgitter-ag.de please note that opportunities and risks from currently unforeseeable trends in selling prices input material prices and capacity level developments may considerably affect business performance over the course of the financial year 2025 Disclaimer: Some of the statements made in this report possess the character of forecasts or may be interpreted as such These are made to the best of the Company’s knowledge and judgment and by their nature are subject to the proviso that no unforeseeable deterioration occurs in the economy or in the specific market situation pertaining to the business units’ companies but rather that the underlying bases of plans and outlooks prove to be accurate as expected with regards to their scope and timing Notwithstanding prevailing statutory provisions and capital market law in particular the Company accepts no obligation to continuously update any forward-looking statements that are made solely in connection with circumstances prevailing on the day of their publication a subsidiary of Germany’s Salzgitter and Siemens Gamesa have signed a contract for the delivery of heavy plates for the construction of wind towers that will be installed at the RWE’s Thor offshore wind farm in Denmark the company will deliver around 25,000 tonnes of heavy plates for the construction of 36 Siemens Gamesa’s GreenerTowers which achieve CO2 equivalent emissions savings of less than 700 kg per tonne of steel The heavy plates for the offshore wind turbine towers will be supplied by ILG and Mannesmann Grobblech GmbH (MGB) The units are scheduled to be delivered to the wind tower manufacturers “We are delighted that ILG and MGB are the first certified suppliers to make a significant contribution to reducing the global CO2eq footprint by supplying low-emission heavy plate we have invested in new equipment to be able to supply such wind projects with 18 – 24 meter long plates the investment in the transport line for finishing with an overhead crane and a mobile roller table extension,” said Oliver Laubner Around 30,000 tonnes of primary material are required to produce the heavy plates, said Salzgitter Some of these slabs are produced with low CO2eq emissions at Peiner Träger using scrap-based electrical steel and renewable energies The remaining slabs are supplied by trading company Salzgitter Mannesmann International from European sources with similar low CO2eq emissions The new GreenerTower has been part of Siemens Gamesa’s product portfolio since 2024 and can be used as an option for all future onshore and offshore wind turbines The Thor offshore wind farm will be the first project to feature the GreenerTower units “It is a pleasure to see the first GreenerTowers taking physical shape in the real world – not only as drawings The energy transition demands end-to-end value chains working together to eliminate CO2eq emissions GreenerTowers exemplifies this collaboration,” said Maximilian Schnippering “If all towers installed by the company in one year were replaced with GreenerTowers it would be equivalent to removing over 466,000 cars from European roads for a year.” Located 22 kilometres off the west coast of Jutland in the Danish North Sea, the project will comprise 72 wind turbines, with 40 units utilising recyclable rotor blades Get in front of your target audience in one move OffshoreWIND.biz is read by thousands of offshore wind professionals daily Daily news and in-depth stories in your inbox renewable energy is key to the future of our planet we have over 60 years’ experience and an in-depth understanding of the power and temperature control needs of wind farms We have a dedicated Wind Energy Team whose innovative strategies […] Get the most important global markets news at your fingertips with a Bloomberg.com subscription For the first time, in an Africa First, Salzgitter Group companies are now supplying SALCOS® "green steel" to Allied Steelrode and Malben Engineering in South Africa for testing purposes This positions them the first tier-1 suppliers (automotive suppliers) in this country to be using CO2-reduced steel for their customers' vehicle production The SALCOS® steel has obtained the necessary approvals been provided with environmentally compatible packaging and shipped on a biofuel-powered ocean-going vessel with a reduced CO2 footprint Salzgitter Flachstahl and Salzgitter Mannesmann International are joining forces with Allied Steelrode and Malben Engineering in the value chain to promote sustainable automotive production by way of low-CO2 steel products “This collaboration supports the sustainability goals and associated innovations in the automotive industry as well as with its supply chain” Managing Director Salzgitter Mannesmann International GmbH Allied Steelrode ranks as one of the leading steel service centers in South Africa with 50 years of manufacturing experience to numerous OEMs Malben Engineering will be stamping and processing components using the SALCOS® material SALCOS® stands for the transformation program Salzgitter Low CO2 Steelmaking and is also the brand name used in identifying all of Salzgitter Group's low-CO2 steel grades from the own production The steel delivered to South Africa is produced on the electric steel route sourcing green electricity and high-quality steel scrap This initiative aims to support Allied Steelrode and Malben Engineering as leading suppliers for sustainable automotive production This first use of SALCOS® steel marks a further step towards realizing a more environmentally friendly future for the automotive industry Thorsten Moellmann Head of Communication & Brand Phone: +49 5341 21-2300moellmann.t@salzgitter-ag.de Olaf Reinecke Press Spokesperson Phone: +49 5341 21-5350reinecke.o@salzgitter-ag.de Tanja Jacobs Head of Business Development Phone: +49 208 20772 4tanja.jacobs@szmh-group.com The steel tower components will be used in early 2025 on an E-138 EP3 wind turbine Salzgitter’s subsidiary Ilsenburger Grobblech and TMGROUP’s SMB Schönebecker Maschinenbau have collaborated to produce a lower-emissions steel tower for wind turbines The steel tower components will be used in early 2025 on an E-138 EP3 wind turbine as part of the Diepholzer Bruch wind farm project in Lower Saxony The project will make it one of the first onshore wind turbines in Europe to feature a tower constructed from lower-emissions steel ENERCON global procurement director for towers Stefan Frey stated: “Working together with such strong partners from the steel industry means we are making significant progress in our mission to integrate sustainability systematically and measurably in our products and processes we can reduce the CO₂ footprint of this steel tower by more than 70% This co-operation provides us with an important basis from which we can offer our customers an even more sustainable tower option in future while of course maintaining our high quality standards and using state-of-the-art tower technology.” Wind turbines featuring a hybrid tower concept are fully constructed from steel The bottom section consists of pre-edged steel plates while the top is made of conical steel sections Don’t let policy changes catch you off guard Stay proactive with real-time data and expert analysis This design offers advantages in installation and transport especially with increasing tower heights and larger base diameters To reduce greenhouse gas emissions in producing heavy plates Ilsenburger Grobblech is utilising CO₂-reduced slabs from its sister company Peiner Träger and another European partner These slabs are made entirely from scrap in an electric arc furnace (EAF) Ilsenburger Grobblech managing director of sales Thorsten Gintaut said: “We are working closely with strong research and industry partners to achieve a steel production that is as climate-neutral as possible We are therefore very pleased to be producing the first lower-emissions tower for a wind turbine in Germany together with ENERCON and other companies from the steel industry “The Salzgitter Group is a leader in the transformation towards low-CO₂ production processes and steel products With our SALCOS – Salzgitter low CO₂ steelmaking programme we are working on replacing fossil fuels with hydrogen produced from renewable energies “The aim is to avoid the generation of CO₂ in the steel production process from the outset and thus enable us to reduce our overall CO₂ emissions by an estimated 95% by the end of 2033.” Give your business an edge with our leading industry insights View all newsletters from across the GlobalData Media network the Salzgitter Group recorded earnings before interest depreciation and amortization (EBITDA) of € 233.6 million and a pre-tax profit of € 11.5 million placed a significant burden on the development of business in the steel-related business units the Technology Business Unit’s very gratifying earnings and the contribution from the participating investment in Aurubis AG boosted the consolidated result As a result of the prices of most rolled steel products trending down the Salzgitter Group’s external sales dropped to € 5.24 billion (H1 2023: € 5.84 billion) EBITDA (€ 233.6 million; H1 2023: € 429.3 million) and earnings before taxes (€ 11.5 million; H1 2023: € 211.0 million) declined The result includes an after-tax contribution of € 70.6 million from Aurubis AG (H1 2023: € – 2.4 million) an investment included at equity (IFRS accounting) The after-tax result came in at € – 18.6 million (H1 2023: € 160.2 million) which brings basic earnings per share to € – 0.40 (H1 2023: € 2.91) Return on capital employed (ROCE) stood at 1.9 % (H1 2023: 7.9 %) The equity ratio remained at a very sound 45.6 % (H1 2023: 44.8 %) the German economy is showing no signs of a sustainable recovery The year 2024 is proving to be one of the most challenging for Germany’s steel industry in decades Aside from the success of our Technology Business Unit – KHS is approaching a record result for the year – 2024 appears to be a lost year from an operating standpoint while we have achieved a great deal in strategic terms The sale of Mannesmann Stainless Tubes represents the most important step so far in our active portfolio management We anticipate cash inflow of € 125 million from this in the second half of the year We will continue to rigorously progress this process of change that is necessary to meet the current and future challenges to our competitive capabilities Further strategic and structural adjustments are to follow Our aim of producing green steel as from 2026 is set in stone The implementation of the first stage of the SALCOS® transformation program remains on schedule and the first plant components have been delivered on site an important prerequisite for launching green key markets for steel has been set in place in the form of LESS developed by the German Steel Federation for the classification of low carbon steel products we successfully introduced our SALCOS® brand for green steel products We are therefore playing our part in decarbonizing Germany’s economy We are challenging the policy makers to think beyond election periods and to act in order to create the requisite framework conditions for the transformation to succeed – first and foremost with a competitive and reliable energy supply.” “The Salzgitter Group’s result in the first half of 2024 has not been satisfactory also against the backdrop of the difficult economic environment Endeavors to counteract this have been assigned top priority Our motto is therefore: “We cannot change the direction in which the wind is blowing What we can do is to reset our sails in order to achieve our goals.” With this in mind and in addition to our “Performance 2026” profit improvement program we have initiated short-term measures to stabilize earnings and secure liquidity New capex is being scrutinized and disbursement plans revised for investments already approved We have also gone through other cost positions and made cuts in various areas structural adjustments that are currently at the drafting stage will take effect in the individual business units We will be reporting on this in due course.” We anticipate the following for the Salzgitter Group in the financial year 2024: Potential one-off effects with an impact on earnings incurred by structural events through to the end of the year have not been taken into consideration may considerably affect business performance in the course of the financial year 2024 The resulting impact on performance may be within a substantial range Interim Report 1st half 2024 (pdf) Key data 1st half 2024 (xlsx) The complete report released on the results of the first half of 2024 can be viewed at:https://www.salzgitter-ag.com/en/investor-relations/news-and-publications.html have signed a long-term power purchase agreement (PPA) that will see the latter acquire power from the 180MW Boitzenburger Land solar park in Brandenburg The Salzgitter Group will begin acquiring power from the project in 2027 The solar farm has been in operation since autumn 2023 and is owned by a joint venture comprising Solarenergie Boitzenburger Land The companies involved expect the deal to see the Salzgitter Group acquire 64GWh of electricity per year over the course of the deal “Large quantities of greenhouse gases are currently still being released during conventional steel production,” said Marco Hauer head of energy procurement at the Salzgitter Group “We are getting serious about green energy sources half of our electricity requirements will come from non-fossil sources and by 2030 we want to be using 100% green electricity.” The company has already announced plans to transition away from using fossil fuels in its steel production process aiming to use electricity and hydrogen-based processes as early as 2026 The Salzgitter Group also aims to completely eliminate carbon dioxide from its manufacturing work by 2033 replacing traditional blast furnaces with electric arc furnaces where PPA prices have remained more stable “The demand for carbon dioxide-free electricity supplies from renewable sources is growing strongly,” added David Egyptien head of commodity solutions in Germany and Benelux at RWE Supply & Trading we want to promote climate protection in all areas of the economy.” we have upgraded our product offerings and features to bring you the best experience please check your email inbox for password reset message from PV Tech and follow the instructions Can\'t find the email? Try to sign in again and use the "Forgot Password" button If you have any questions please contact us and the wind turbine manufacturer Siemens Gamesa have signed a contract for the delivery of around 25,000 tonnes of heavy plates for the construction of 36 wind towers These wind towers are the so-called ‘Siemens Gamesa GreenerTower’. The special feature of this tower is its CO2eq emissions of less than 700 kg per tonne of steel This is a significant step for the industry as the production of wind towers alone is responsible for more than two thirds of all CO2eq emissions from wind turbines The new CO2eq-reduced tower has been part of Siemens Gamesa's product portfolio since 2024 and can be used as an option for all future onshore and offshore wind turbines The first use of the Siemens Gamesa GreenerTower is now the offshore wind farm ‘Thor’ in the Danish North Sea on the west coast of Jutland which is planned to be completed by the end of 2027 and has a planned capacity of more than 1,000 MW This will make ‘Thor’ Denmark's largest offshore wind farm to date with a total of 72 wind towers which will supply more than one million Danish households The wind farm is operated by the energy supply company RWE. The heavy plate for the 36 ‘GreenerTowers’ will be supplied by Ilsenburger Grobblech GmbH (ILG) and Mannesmann Grobblech GmbH (MGB) ‘We are delighted that ILG and MGB are the first certified suppliers to make a significant contribution to reducing the global CO2eq footprint by supplying low-emission heavy plate we have invested in new equipment to be able to supply such wind projects with 18 - 24 meter long plates the investment in the transport line for finishing with an overhead crane and a mobile roller table extension,’ says Oliver Laubner Sales Manager at Ilsenburger Grobblech GmbH. ’It is a pleasure to see the first GreenerTowers taking physical shape in the real world – not only as drawings GreenerTowers exemplifies this collaboration If all towers installed by the company in one year were replaced with GreenerTowers it would be equivalent to removing over 466,000 cars from European roads for a year Innovations like this are crucial to achieving our sustainability goals’ states Maximilian Schnippering Head of Sustainability at Siemens Gamesa. Around 30,000 tonnes of primary material are required to produce the heavy plates Some of these slabs are produced with low CO2eq emissions at Peiner Träger GmbH (PTG) using scrap-based electrical steel and renewable energies The remaining slabs are supplied by our international trading company Salzgitter Mannesmann International from European sources with similar low CO2eq emissions. The heavy plates for the wind towers are to be delivered to the wind tower manufacturers Windar in Spain and Welcon in Denmark from March to October 2025 Thorsten MoellmannHead of Communication & BrandPhone: +49 (0)5341 21-2300moellmann.t@salzgitter-ag.de Olaf ReineckePress SpokespersonPhone: +49 5341 21-5350reinecke.o@salzgitter-ag.de Free NewsletterUK Join the newsletter that everyone in finance secretly reads Volkswagen’s battery subsidiary PowerCo is scaling back plans for its Salzgitter opting to build just one of the originally planned two production lines due to cost pressures and dwindling demand for electric vehicles (EVs) Volkswagen planned for the Salzgitter plant to boast a 40 gigawatt-hour annual capacity only one production line with a 20 gigawatt-hour capacity is confirmed with the second line’s future hanging in the balance Workers are understandably worried; there’s speculation that broader cost-cutting strategies at Volkswagen might result in the second line being scrapped entirely Volkswagen hosted staff meetings across its plants highlighting potential closures and job cuts Production at Salzgitter is still set to begin in 2025 although any future expansions will hinge on market demand For markets: Navigating the waters of uncertainty and similar cost-cutting measures might emerge elsewhere The bigger picture: Global economic shifts on the horizon Theodora Lee Joseph, CFA The Great Wealth Transfer Is Coming – Here’s How To Profit From ItStéphane Renevier, CFA Markets Could Pick A Direction This Week – Here's WhyJonathan Hobbs, CFA Why GameStop Might Actually Be Worth A Look Right NowTheodora Lee Joseph, CFA Political Risk Is Part Of A Stock’s Value Now – And, No, You Can’t Afford To Tune It OutTheodora Lee Joseph, CFA Apple And Amazon’s Results Were Sturdy, But Their Future Looks A Little Less SoREAD NEXTNews Skechers Goes Private In $9.4 Billion Deal With 3G CapitalFinimize Newsroom Edgewell Braces For 2025 Challenges As Tariffs BiteFinimize Newsroom A Defensive Portfolio Prepared For The Wealth Effect’s ReversalStéphane Renevier, CFA One Common Hedge-Fund Trade Could Bring Down Financial Systems – And It Nearly Backfired This WeekRussell Burns Coinbase’s Steep Drop Might Make It Interesting, But It Hasn’t Made It CheapRussell Burns Tariffs Are Spooking Investors Into Panic-Selling – Here’s What to Do InsteadReda Farran, CFA Threats Are Rising. So Here’s How To Invest In Cybersecurity.Theodora Lee Joseph, CFA Apple And Amazon’s Results Were Sturdy, But Their Future Looks A Little Less SoTheodora Lee Joseph, CFA Disclaimer: These articles are provided for information purposes only an opinion about whether to buy or sell a specific investment may be provided The content is not intended to be a personal recommendation to buy or sell any financial instrument or product or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience your financial situation or your investment objectives You may not get back all the money that you invest The investments referred to in this article may not be suitable for all investors an investor should seek advice from a qualified investment advisor This article may contain AI-edited content While efforts have been made to ensure accuracy AI may not capture the nuances of the subject matter resulting in errors or inconsistencies On February 12, the cornerstone was laid for one of the largest production plants for green hydrogen in the whole of Europe. Starting from 2026, the plant will generate around 9,000 tons of green hydrogen a year to be used for the production of carbon-reduced steel. This will mark the start of the industrial use of hydrogen in SALCOS® - Salzgitter Low CO2 Steelmaking SALCOS® is aiming for virtually carbon-free steel production The 100 MW electrolysis plant will be supplied on an EPC basis by the international technology company ANDRITZ using the pressurized alkaline electrolysis technology of HydrogenPro. Gerd Baresch Technical Director of Salzgitter Flachstahl GmbH explains: “Today’s spades in the ground represent a further major step in our SALCOS® program This shows that the transformation of our company to low-carbon steel production is progressing on schedule With this system for on-site hydrogen production The onus is now on governments to create suitable framework conditions for green production The priorities here are competitive grid costs and a commitment to building the hydrogen economy.” Sami Pelkonen adds: “We are very proud to be making a contribution to the conversion to climate-friendly steel with the laying of the cornerstone today for our 100 MW electrolysis plant Our extensive experience in the construction of major plants provides us with a solid foundation for realizing this innovative project It fits perfectly with our long-term growth strategy which is focused on decarbonization and supports our customers such as Salzgitter in mastering their green transformation.” SALCOS® is being realized in stages and it consists of a direct reduction plant an electric arc furnace (both already under construction) and the 100 MW electrolysis plant for the production of hydrogen Salzgitter Flachstahl GmbH will launch products using the new route on the market as early as 2026 Conversion to virtually carbon-free steel production at the Salzgitter facility is due to be completed by 2033 Niklas JelinekPress Spokesperson / Media RelationsPhone: +43 6763048543niklas.jelinek@andritz.com the use of 100 percent scrap and production via the electric arc furnace route saved over 70 percent of CO2 emissions in the components supplied by Salzgitter the material handler will be used for scrap handling at Germany's largest scrap yard in Salzgitter. The best practice for the circular economy shows that significant decarbonization can be achieved not only through the efficient operation of machines but also during their manufacture. A large part of the value chain was achieved within the Salzgitter Group From scrap procurement and steel production to the rolling of the heavy plates and processing so that weldable steel construction components with the usual properties and quality were supplied to SENNEBOGEN. Both partners have the common goal of decarbonization we are pursuing ambitious climate targets and are therefore constantly working on the efficiency durability and sustainability of our machines during operation Salzgitter has impressively demonstrated to us how the use of CO2-reduced steel can significantly reduce CO2 emissions during the production process without any additional effort," reports Erich Sennebogen "This pioneering project clearly shows the synergies that result from many years of partnership and respective sustainability ambitions The handling machine with components made from recycled scrap is part of DEUMU's process chain and ensures that the electric arc furnace at Peiner Träger and Salzgitter Flachstahl's new SALCOS® route are supplied with scrap it can be recycled again – in line with the circular economy," adds Uwe Rehren The 830 G material handler made of CO2-reduced SALCOS® steel can be viewed at the SENNEBOGEN Maschinenfabrik GmbH stand FM.712 up to and including April 13 https://www.salcos-greensteel.com/success-stories/material-handler.html and the construction and waste management company Papenburg to take over the steel producer Salzgitter are becoming more concrete The consortium "submitted a non-binding offer to the executive board in the context of a potential takeover bid to acquire the company’s shares citing an indicative offer price of €18.50 per share" The indicative price represents a premium of 18 per cent compared to the previous day's closing price of €15.70 Based on a total number of issued shares of 60.1 million the offer values the Salzgitter Group at €1.1bn The steel company said that it was engaging in discussion with the consortium and that it was "in the process of examining the non-binding offer underlining that the outcome of both was open It has been known since early November 2024 that Papenburg and TSR are jointly considering a takeover of the steel manufacturer The aim is to acquire at least 45 per cent plus one share in Salzgitter AG Papenburg and TSR want to strengthen their influence on the steel group and support "the transformation of Salzgitter AG towards green steel" GP Günter Papenburg AG is already the largest Salzgitter shareholder with a 26.7 per cent stake in the company It is closely followed by the German federal state of Lower Saxony which also owns a blocking minority stake of 26.5 per cent in the steel group via its investment company Hannoversche Beteiligungsgesellschaft Niedersachsen mbH (HanBG) The state's finance ministry told the news agency dpa on Thursday that it did not see any economic advantages in an offer Minister President Stephan Weil (SPD) had already denied there was a need to "change the shareholding structure" of Salzgitter the state government had said it would conduct a very thorough examination of TSR and Papenburg’s announced plans to acquire economic control of Salzgitter AG as well as the associated legal and economic consequences The government said it would especially consider the interests of employees Salzgitter's employee representatives are also opposed to the potential acquisition The company's works council and the IG Metall union "stand by their view that Salzgitter AG is to ensure a sustainable future for the company and jobs without such a take-over and while maintaining its independence and co-determination" deputy chairman of the steel company's supervisory board and member of IG Metall's executive board Salzgitter AG’s subsidiaries include Deumu (Deutsche Erz- und Metall-Union GmbH), which is active in ferrous and non-ferrous metals recycling and trading, NF metals and ferro-alloys, and steel processing. Last year, the company announced it would invest €30m into a new large-scale shredding plant Reporting by Anastasiia Kozlova in Gdansk and Miranda Murray in Berlin; Editing by Kevin Liffey Speed editor on the Berlin hub who provides general coverage on everything from politics to energy in Germany, Austria and Switzerland, with the goal of getting the news out as quickly as possible. Miranda previously worked at the German press agency dpa and Chicago Tribune You don't have permission to access this resource. , opens new tab.Reporting by Bernadette Hogg The Supervisory Board of Salzgitter Flachstahl GmbH (SZFG) appointed Dr Heike Denecke-Arnold (54) as the new Chair of the Management Board at its latest meeting succeeding Ulrich Grethe (63) who will leave the company as agreed on 12/31/2024 to enter retirement The existing Management Board will report to the Executive Board of Salzgitter AG in the interim Heike Denecke-Arnold commands many years of leadership and management experience in the steel industry and holds extensive expertise in the fields of sales She studied Metallurgy and Materials Engineering at RWTH Aachen University where she subsequently completed her doctorate Chair of the Supervisory Board of SZFG and CEO of Salzgitter AG commented as follows on the appointment. “We are delighted to have recruited a proven steel expert and natural leader for our Group in Dr We are currently engaged in transitioning to low-carbon production processes I am certain that with her extensive know-how Denecke-Arnold will integrate and drive the further implementation of SALCOS® - Salzgitter Low CO2 Steelmaking forward with the prime aim of creating value-added solutions for our customers This will also help to safeguard our location here and secure future-proof steel production in Germany.” Gunnar Groebler went continued with the following remarks “Ulrich Grethe has played a decisive role at Salzgitter Flachstahl GmbH His journey from trainee to Chair of the Management Board and member of the Group Management Board is a testament to what can be achieved with verve He initiated and shaped many of the trailblazing strategies of the past decades Ulrich Grethe has been instrumental in ensuring that Salzgitter as a steel location has the necessary potential to maintain its leadership role.” Heike Denecke-Arnold addressed her new assignment in the following terms “I look forward to assuming a position of responsibility in this exciting and challenging phase of the company and to working with all the different teams to successfully lead the company’s transformation into the future I am firmly convinced that steel will remain the number one industrial material and that it can continue to be viably produced in Germany The transformation already underway proves that we are on the right track.” This website is using a security service to protect itself from online attacks The action you just performed triggered the security solution There are several actions that could trigger this block including submitting a certain word or phrase You can email the site owner to let them know you were blocked Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page Energy company Vattenfall and steel producer Salzgitter are pushing ahead with their joint goal of decarbonising industrial production processes A new power purchase agreement (PPA) provides for fossil-free electricity from the Nordlicht 1 offshore wind farm to be available for steel production from 2028.  “The electricity partnership with Salzgitter underlines our long-term strategy at Vattenfall to enable a fossil-free life not only for ourselves responsible member of the Executive Board and Head of Markets at Vattenfall He adds: “With our fossil-free electricity we want to decarbonise entire value chains and support industry in particular on its path to green transformation.” Gunnar Groebler, CEO of Salzgitter AG: “With our SALCOS® program we are already in the middle of the transformation of steel production towards low-CO2 production processes Green steel needs green energy: This agreement is therefore the next important step in securing our energy requirements for low CO2 production we have another powerful partner at our side and we look forward to working together.” The project partners: (from left to right) Marco Hauer (Salzgitter) the agreement – a so-called Power Purchase Agreement (PPA) – provides for a share of 75 megawatts of connected load from the Nordlicht 1 offshore wind farm to be made available to the Salzgitter Group over a period of 15 years The Nordlicht 1 wind farm is currently being developed around 85 kilometres north of the island of Borkum It is due to be completed and connected to the grid in 2028 Salzgitter will then purchase around 300 gigawatt hours of electricity per year for steelmaking processes – equivalent to the annual electricity consumption of around 120,000 households “Fossil-free electricity from private supply contracts is highly valued by our customers This is because it offers competitive costs and the guarantee that the electricity purchased actually comes from renewable sources including proof of the type and location of green electricity generation” Vattenfall is building and developing the Nordlicht 1 offshore wind farm with 68 wind turbines and a total capacity of 980 megawatts in the German North Sea Vattenfall holds a 51 per cent stake in Nordlicht 1 Vattenfall intends to use its share of future electricity generation to supply customers in Germany with fossil-free electricity.  Electricity partnerships primarily offer producers and consumers of renewable electricity investment security price guarantees and risk diversification – with freedom of contract design Observers expect demand for electricity partnerships between producers and industrial companies to increase in the coming years According to an analysis by the German Energy Agency (Dena) the volume of PPAs in Germany could rise to 192 terawatt hours by 2030 – covering a quarter of Germany's total electricity demand A secure and competitive supply of clean energy plays a decisive role not least for steelmaking processes in Germany After successfully testing multi-use offshore practices at Danish Kriegers Flak in the Baltic Sea Vattenfall and its project partners are now bringing the pioneering WIN@sea project to the .. When Swedish Bruzaholm wind farm is completed this autumn it will not only produce fossil free power It will also be a shining example of how partnering can spur innovative ideas Artificial intelligence combined with drones offers significant advantages for offshore wind Advanced AI technologies not only enhance safety and efficiency of offshore activities but also .. Contact us LinkedIn YouTube Instagram Facebook Vattenfall is a European energy company with approximately 21,000 employees For more than 100 years we have electrified industries supplied energy to people's homes and modernised our way of living through innovation and cooperation More about Vattenfall Volkswagen, one of the leading car makers, is driving forward the transition to electric vehicles (EVs) Germany-based company believes that it’s crucial to vertically integrate the battery value chain Volkswagen took matters into its own hands and founded the battery company PowerCo in 2022 “PowerCo will develop and produce battery cells for the VW Group in best quality told the audience during a live session at Hannover Messe trade fair “The gigafactories are set up to a standard factory design.” This ensures the same processes and the same workflows at all its locations Click the button below to load the content from YouTube “Construction is in full swing at the first standard factory in Salzgitter It serves as a blueprint for all PowerCo’s gigafactories,” Eckle said Cell production in Germany will start in 2025; Valencia the Salzgitter plant is to reach an annual capacity of up to 40 GWh—enough for about 500,000 electric vehicles The three gigafactories in Europe and North America will have a total volume of up to 200 GWh Eckle pointed out that producing battery cells is a completely new business for Volkswagen “It is not manufacturing cars anymore; it is chemistry We go all the way from mining to the complete cell and recycling,” he said cell production is a very relevant topic for sustainability so PowerCo has to make sure that the complete supply chain is committed to Volkswagen’s sustainability standards The company’s scope will include new business models based around reusing discarded car batteries and recycling the valuable raw materials they contain The battery cell manufacturer started from scratch: 24 months ago not only the factory had to be built but the staff for the startup company had to be recruited Now there are about 1,500 employees in different areas from research and development to operations and they are the basis for building the company The same applied to the IT landscape: it first had to be set up Eckle said: “We have a very high demand that we need to satisfy for electric vehicles and from our understanding this will only work if we have the right standards in place.” Stephan Fester agreed: “Without standards you will never have the performance you need to set up a factory at this scale in no time.” Fester described how SAP and PowerCo connected in 2022 and defined a project scope for the first phase in only two days “Another very important factor for success was that we as SAP wrote the concept according to our understanding of the requirements. PowerCo carried out a review and confirmed it,” Fester explained. “We didn’t ask PowerCo what it wanted, because it couldn’t specify that at the time. We understood the business and designed and implemented it based on our experience.” In June 2023, the project team delivered the first version of logistics management. Fester explained the concept: “We synchronized the setup plan of the factory with the IT plan. If we know the first truck will arrive at the factory at a certain day, that means the capabilities to manage the truck and the material handling need to be available prior to that.” Enhanced logistics were implemented in November, like in-warehouse processes, batch management, and returnable packaging management. At the beginning of 2024, integrated business planning went live, and more logistics processes were implemented. The next phase is already planned and set-up with product lifecycle management and other systems. PowerCo is now well positioned for future business development. The current cloud ERP system serves as the central foundation for cell production. It will also support future business models like recycling of battery cells and the energy storage system business. Reporting by Maria Martinez and Louis van Boxel-Woolf Editing by Rachel More and Christina Fincher Maria Martinez is a Reuters correspondent in Berlin covering German economics and the ministry of finance. Maria previously worked at Dow Jones Newswires in Barcelona covering European economics and at Bloomberg, Debtwire and the New York Stock Exchange in New York City. She graduated with a Master of International Affairs at Columbia University as a Fulbright scholar.