Mr. Bott, could you provide an overview of SHS’ climate strategy and how the Power4Steel project aligns with your goals?
Michael Bott—Dillinger and Saarstahl are clearly committed to meeting the goals of the Paris Climate Agreement. The “Power4Steel” decarbonization project envisages a significant reduction in greenhouse gas emissions by 2045 at the latest, with the aim of achieving carbon-neutral production.
Our objective is to supply our customers with green steel from 2028 / 29 onwards. The plan in phase 1 is to put a direct reduced iron (DRI) plant at our Dillingen site and two electric arc furnaces (EAFs) for our production facilities in Dillingen and Völklingen into operation. The commissioning of these facilities will allow one of the two blast furnaces in Dillingen to be shut down by 2030. The long-term goal is to fully switch the remaining blast furnace operation to carbon-neutral production by 2045 at the latest. Initially, we intend to use natural gas for DRI production, which will be successively replaced by hydrogen.
The new electric arc furnaces play a key role in our plan to become carbon neutral by 2045. The increased use of scrap and DRI lowers CO2 emissions significantly and paves the way to a sustainable future, taking a pivotal step toward “green steel.”
The new electric arc furnaces play a key role.
Mr. Bott In what ways does the automation and digitalization of the EAF contribute to operational efficiency and safety, and how does this align with SHS’s objectives for innovation?
The comprehensive automation and digitalization of the new electric arc furnace is setting new standards in terms of efficiency and safety. The entire melting process is optimized by employing intelligent control systems, high-precision sensors, and AI-assisted analytics. This reduces energy consumption, improves the utilization of resources, and ensures consistently high steel quality. At the same time, automated processes cut production times and minimize material losses.
Occupational safety also benefits considerably: Digital monitoring systems detect potential risks early on, while machines are increasingly handling critical tasks. This results in fewer manual interventions and enhances employee safety. Predictive AI-assisted maintenance contributes significantly to occupational safety by reducing unplanned outages, avoiding dangerous maintenance work, and creating a safer working environment. AI detects wear or malfunctions at an early stage, so that preventive measures can be taken.
The result is safer, more efficient, and more sustainable steel production. From a long-term perspective, the aim is to reduce CO2 emissions by up to 4.9 million tons per year and achieve corresponding annual cost savings. These innovations strengthen the competitiveness of SHS and consistently advance its transformation toward eco-friendly steel production.
Mr. Bott, you will be pioneering green steel production in Europe, what support do you expect from policymakers to ensure the success of this transition?
We are pioneers in green steel production in Europe. In order for this transformation to succeed, we need stable political framework conditions and long-term planning security. Companies like ours, which are proactively committed to decarbonization pathways, depend on a reliable regulatory environment. The crucial factor here is that politics maintains its course and continues to consistently support this transformation.
First and foremost, it is vital that energy prices become internationally competitive again. What’s more, sufficient green power must be available to drive transformative change in the steel industry. Our industry also needs protection from unfair com-petition – an effective Carbon Border Adjustment Mechanism (CBAM) with targeted safeguards will play a central role in this. These measures must ensure that market distortions are avoided and that steel companies that have already invested in decarbonization are not put at a disadvantage.
We also need pragmatic solutions to secure hydrogen supplies that allow rapid use for industrial applications. At the same time, it must be possible for natural gas to continue to be utilized as a bridge technology during the transition phase. Natural gas is already available today and offers considerable potential for CO2 reduction.
Political actors must be able to recognize these realities with a pragmatic approach and respond flexibly to new developments. It is only through joint, resolute action that we can decarbonize our production processes while remaining competitive at the same time.
The flexibility in raw materials allows resilient production.
Mr. Lanari, the new Saarstahl EAF boasts a transformer capacity of 300 MVA, making it one of the most powerful in the world. How does this installation support the industry’s shift towards sustainability?
Andrea Lanari—This powerful electric arc furnace demonstrates our commitment to pioneering advancements in steelmaking technology. The EAF’s capacity to process up to 100% scrap or a mix of cold direct reduced iron (CDRI) and scrap shows our dedication to resource efficiency and recycling. This flexibility allows for the optimization of raw material inputs based on availability, cost, and environmental considerations, thereby enhancing the adaptability of the steelmaking process.
By utilizing up to 100% scrap, the EAF maximizes the recycling of steel, reducing the need for virgin raw materials and significantly decreasing the carbon footprint. The ability to incorporate a high percentage of CDRI / HBI further supports sustainability by enabling the use of low-carbon feedstocks.
Moreover, this flexibility in raw material processing allows for a more responsive and resilient production system, capable of adjusting to market fluctuations and supply chain dynamics. This adaptability not only ensures consistent output and quality but also contributes to the overarching goal of achieving carbon neutrality.
How does the EAF design with features like Condoor® and X-Pact® automation represent a technological advancement and what benefits do these features provide?
With these solutions, we aim to maximize yield and optimize energy efficiency in electric steelmaking. The Condoor® system optimizes slag management, reducing power-off time and enhancing energy savings, which directly contributes to lowering the environmental impact. Meanwhile, the X-Pact® automation suite, with features like X-Pact® Sense and X-Pact® Autotap, ensures precise control over the steelmaking process, facilitating predictive maintenance and minimizing downtimes. These advancements not only improve productivity but also ensure a safer working environment.
Managing noise emissions is crucial for the local community.
Ms. Kmiecik, considering the plant’s location on a brownfield site in a densely populated area , how have SMS group and SHS addressed the challenge of noise emissions to ensure minimal impact on the surrounding community?
Maria Kmiecik—In urban settings like Völklingen, managing noise emissions is crucial to maintaining a peaceful coexistence with the local community. SHS, in close collaboration with SMS group, has undertaken a comprehensive analysis of noise emissions. This initiative involved working closely with a consulting company to meticulously identify and assess the primary sources of noise within the plant. Through this partnership, SMS group and SHS have developed and implemented effective noise-reduction strategies. These efforts not only comply with regulatory standards but also demonstrate a proactive commitment to sustainability and community well-being.
How does the collaboration with SHS work during the project so far?
Up to now, SMS group and SHS worked closely to identify key areas where technological advancements could drive efficiency and sustainability. Our close collaboration ensured that the proposed solutions were not only technically feasible but also economically viable, providing SHS with a clear pathway to achieving their carbon-neutrality goals.
Now that the project proceeds to execution, we will enforce our partnership even more, since – as mentioned – the location in Völklingen is challenging, and the project will take place in a brownfield environment and thus during ongoing operations. On behalf of the entire project team, I can say that we are all set to turn this project into a success and we are looking forward to working closely with SHS.
