German energy company Uniper and steel producer Salzgitter have established a preliminary agreement to supply and purchase green hydrogen. This pre-contract outlines both technical and commercial stipulations for the provision of hydrogen, pivotal for Salzgitter’s SALCOS – Salzgitter Low CO2 Steelmaking program.
Uniper plans to produce the hydrogen at its 200 MW electrolysis facility in Wilhelmshaven, slated for commissioning in 2028. The hydrogen will fuel a direct reduction plant in Salzgitter, aiding in the production of nearly carbon-neutral steel.
The agreement depends on the development of Germany’s core hydrogen network and a specific pipeline route from Wilhelmshaven to Salzgitter. Should these infrastructural prerequisites be met, Uniper could supply Salzgitter with up to 20,000 tons of certified green hydrogen annually starting in 2028.
Uniper emphasized the importance of swiftly establishing a pipeline connection from Wilhelmshaven to Salzgitter, crucial for the initial stage of SALCOS, which will eventually need up to 150,000 tons of hydrogen per year. The company urged pipeline operators and political decision-makers to fast-track this development in collaboration with Salzgitter AG and Uniper SE.
