SMS Group and Saarstahl collaborate on carbon-neutral steelmaking project

SMS group and Saarstahl, a subsidiary of SHS - Stahl-Holding-Saar, have announced a partnership aimed at accelerating carbon-neutral steel production with the construction of a cutting-edge electric steelmaking plant in Völklingen, Germany. The project forms part of SHS's "Power4Steel" initiative, targeting carbon neutrality by 2045.

Under the agreement, SMS group will supply one of the world’s most powerful Alternate Current-Electric Arc Furnaces (AC-EAF), with a transformer capacity of 300 MVA. This high-performance furnace is set to play a key role in reducing emissions, marking a significant step towards SHS's decarbonization goals.

The new 185-ton EAF will be installed in a brownfield area at Saarstahl's Völklingen site. Capable of producing 1.9 million tons of liquid steel annually, the EAF is designed to process a flexible mix of up to 100 percent scrap or a combination of Cold Direct Reduced Iron (CDRI) and Hot Briquetted Iron (HBI) with scrap. Its operation will utilize a mix of natural gas and hydrogen by 2030, aligning with SHS's strategy to reduce carbon emissions.

Jochen Burg, CEO of SMS group, emphasized the importance of the project in advancing Europe's green steel transformation, noting that the 9.3-meter shell diameter EAF represents the largest furnace ever built by SMS group.

The project will include several advanced technologies to enhance efficiency and sustainability. The furnace will feature SMS group’s proprietary Condoor® slag door, designed to improve safety, productivity, and environmental performance by reducing energy use and lowering emissions. Additionally, SMS's X-Pact® automation system, including predictive maintenance and leakage detection technologies, will ensure high levels of operational efficiency and safety.

Construction is set to begin in October 2024, with the first production phase expected by September 2028. The plant will produce a range of steel grades, including bearing, free-cutting, and spring steel.

This development marks a significant milestone in SHS’s carbon-neutral journey, reinforcing the company's commitment to sustainable steelmaking.

Source and Photo: SMS Group