"Our customers’ future is green."

The plan is for Germany to become climate-neutral by 2045, and the EU by 2050. This calls for a massive reduction in greenhouse gas emissions and a huge expansion of renewable energies. Associated with this are high investment in climate-neutral technologies, adapted production processes and sustainable products. So that the transformation process can pick up speed, the generation, availability and distribution of energy must be brought into line with supply and demand for renewable energies. A key role in this is played by the political will to give the entire process a powerful kickstart. Clearly defined regulatory conditions are therefore necessary to promote investment and support innovation.

Renewable energy generation well on its way
Renewable energies such as solar, wind and hydropower form the basis of green transformation. Across the EU, coal accounted for only 10 % of electricity generated in 2024. And in Germany, according to the Federal Environment Agency, renewable energies were behind 52.5 % of gross electricity consumption in 2023.

Caverns can also store hydrogen
The second key component of energy transition is energy storage as the basis for security of supply. Green hydrogen plays a central role here, as it can be used to store large volumes of energy over long periods of time, which can then be retrieved and distributed as needed.
    The first attempts at storing hydrogen on a large scale in the same way as natural gas were successfully carried out by cavern operator Storag in Etzel (Wittmund district) back in February 2023. In 2024, a pilot cavern was commissioned by the energy company Uniper in Krummhörn (Aurich district) and, with its epe-H2 project, the energy supplier RWE also plans to start commercial operation of a hydrogen storage facility in Gronau-Epe from 2027.

Core hydrogen network for nationwide energy distribution
To make hydrogen available nationwide and in line with demand, the existing natural gas network has to be converted. In mid-2024, the Federal Network Agency approved the core network application submitted by the long-distance network operators. This clears the way for the realisation of the core hydrogen network in Germany. The core network will interconnect key hydrogen locations – from production centres and import points to storage facilities and future customers in industry and power plants.The approved core network in Germany has a total length of 9,040 kilometres. Around 60 % of the pipelines will be converted from their current natural gas operation to hydrogen. In addition, around 3,600 kilometres of new pipelines will be needed by 2032.

Carbon-neutral production processes
To achieve the desired carbon reduction targets, renewable energies must be adopted as soon as possible in the energy-intensive production processes of industries such as chemicals, mineral building materials, and steel production and processing.
This is where Salzgitter AG and Mannesmann Line Pipe are doing truly pioneering work and consistently pursuing the pathway towards climate neutrality.

Climate-friendly steel production becomes reality
What started out as general proposals in 2015 has now become reality in some areas. With its SALCOS^® (Salzgitter Low CO₂ Steelmaking) project, Salzgitter AG is already well on its way in its transformation to carbon-neutral steel production and processing.
    The guiding principle has always been its consistent ‘carbon direct avoidance’ strategy, i.e. preventing CO₂ from arising in the production process in the first place. For this reason, the three existing blast furnaces at Salzgitter Flachstahl will be gradually replaced by direct reduction plants and electric arc furnaces by 2033. Overall, carbon emissions from steel production can then be reduced by over 95 % versus the current blast furnace route.

New technological approach low-CO₂ steel production
Direct reduction is a technology that no longer requires carbon in the production of iron. With the aid of hydrogen, iron ore is reduced to sponge iron, i.e. almost pure iron. Instead of CO₂, the process generates water, which is reused in the integrated process. The first direct reduction plant will go into operation as early as the beginning of 2027.

In-house production of green hydrogen
Seven wind turbines were commissioned on the Group's premises in Salzgitter in 2020 for the production of green hydrogen by PEM electrolysis. With the aid of the highly efficient high-temperature electrolyser, hydrogen demand for annealing processes and steel finishing is already being met today.
    To serve the direct reduction plant currently under construction, a 100 MW electrolysis plant is currently being built on the plant site in Salzgitter. The hydrogen produced here will then be mixed with natural gas and used as a reducing agent.

Low-CO₂ steel from scrap
Also in 2020, an agreement was reached on supplying Salzgitter Flachstahl with electric steel slabs from sister company Peiner Träger.
    In the steel production process using 100% scrap in an electric arc furnace, the iron does not first have to be freed from bound oxygen. Carbon emissions can be reduced to around a quarter of that using the conventional blast furnace route.

Salzgitter AG banks on green hydrogen
In February 2022, Uniper and Salzgitter AG signed a cooperation agreement under which Uniper is to supply the SALCOS project in Salzgitter with competitively priced green hydrogen for the production of climate-friendly steel. The basis for this is the Green Wilhelmshaven project, in the context of which an ammonia import terminal and a 1 GW electrolysis plant for hydrogen production are to be built by the end of the decade. In combination with the import terminal, the electrolyser could supply around 300,000 tonnes of green hydrogen, says Uniper.
    What currently sounds futuristic must soon become common practice if the ambitious targets for the decarbonisation of industry are to be achieved.

Urgently needed market ramp-up for green hydrogen
This is because the demand for green hydrogen and hydrogen derivatives such as ammonia, methanol and sustainable aviation fuels (e-SAF) is huge. The National Hydrogen Strategy estimates an annual hydrogen demand totalling 90 to 110 terawatt hours (TWh) by 2030. Germany will therefore be dependent on imports. HINT.CO based in Leipzig, the world's first hydrogen trader, has been founded to get the market up and running. The company, which is part of the non-profit H2Global Foundation, aims to boost supply and demand for green energy produced abroad. To this end, hydrogen derivatives are purchased in bidding processes at the lowest price under 10-year contracts, which are sold on the demand side through short-term contracts. This is intended to incentivise companies to invest in renewable energies. The Federal Ministry for Economic Affairs and Climate Protection (BMWK) is providing up to EUR 4.4 billion in securities for new rounds of bidding for contracts running until 2036.

Measures taking effect
All in all, the short-term measures and the medium and long-term alternatives in the choice of energy sources appear to be strengthening security of supply in Germany and Europe. "With our Mannesmann HFI-welded steel pipes, we are now doing and will continue to do everything we can," says Thannbichler summing up.

The processing of SALCOS^® steel into low-CO₂ steel pipes is in our view another milestone in Mannesmann's over 130 years of production expertise.Konrad Thannbichler, Mannesmann Line Pipe Head of Sales

Salzgitter AG's climate-neutral steel production will be implemented in three stages in a long-term process. By gradually replacing the currently used blast furnaces with direct reduction plants and electric arc furnaces, Salzgitter AG will already be technically capable of reducing emissions by around 95 % by the end of 2033.

There is already growing demand for SALCOS^® products made from low-CO₂ steel. Big-name customers have already secured quantities for themselves. Among other things, Salzgitter AG's SALCOS^® steel helps companies achieve their own sustainability goals.