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Decarbonizing the steel industry with green hydrogen

Steel is the second most traded material worldwide. By 2050, its global demand is estimated to increase by more than a third. Concurrently, the steel sector is the heavy industries' top greenhouse emitter and the second-largest energy consumer, responsible for 2.6 gigatons of CO₂ annually — accounting for more than all road freight and 7% of global energy-related emissions. Green hydrogen is the solution for lowering emissions in the iron & steel-making industry.

Making steel production nearly carbon-free is possible by replacing the traditional blast furnace route with a direct reduction of iron using green hydrogen — a gas produced through water electrolysis, where electricity is used to split water into hydrogen and oxygen. In Hydrogen-based Direct Reduction (H-DRI), green hydrogen replaces coke, reacting with the iron ore to produce water vapor instead of CO₂. Furthermore, the process is combined with electric arc furnaces for steel making. Green hydrogen can be introduced into blast furnaces using the existing infrastructure. On average, 50–80 kg of green hydrogen is required per ton of steel, though ongoing advancements are expected to improve the estimate. Green hydrogen production is expanding, with integrated supply chains developing globally.

Harness the potential of green steel

Decreased CO₂ emissions

Hydrogen-based direct reduction (DRI), powered by renewable energy, could lower emissions from over 2,000 kg of CO₂ per ton of steel to below 400 kg, aligning with the IEA's criteria for near-zero emission steel.





Competitive end-product price

Although green steel costs 40% more than unabated production today, it has a limited effect on consumer markets and end product prices. For example, the premium goes down to 1% in the final price of an EV. In practice, the price difference using green steel per car is between 300 to 500 euros.


Public funding opportunities available

The steel industry is encouraged to produce green steel globally.

For example, the EU has allocated about €95.5 billion for projects towards 2027 , which includes funding for green technologies in the steel sector.




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Salzgitter orders one of Europe's largest green hydrogen plants from ANDRITZ

The Salzgitter Group has selected technology group ANDRITZ to supply one of Europe's largest green hydrogen plants for the SALCOS® program, which aims to achieve virtually CO2-free (green) steel production.


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ANDRITZ: Your holistic partner in green hydrogen plants

ANDRITZ responds to the urgent need for the steel industry's decarbonization  and green transition. We provide holistic and integrated P2X  plants enabling the production of green hydrogen — ranging from consulting to EPC projects with full performance guarantees. Our long-term service agreements are based on our proprietary digital solution.

ANDRITZ's solutions include

  • Converting an idea into a detailed design and project plan
  • Pre-engineering work (FEL-1 - FEL-3) to fully support the customer's FID (final investment decision)
  • Executing the project plan as EPC (Engineering, Procurement, Construction) 
  • Providing LTSA services for the operating plant.


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