en.Wedoany.com Reported - Energy service provider EWE and Salzgitter subsidiary Salzgitter Flachstahl have signed a long-term green hydrogen supply agreement, planning to deliver approximately 10,000 tons of green hydrogen annually via the hydrogen core network starting from 2030. The signing ceremony took place at the EWE representative office in Berlin, attended by Gitta Connemann, Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Energy, and Olaf Lies, Minister President of Lower Saxony.
This contract is EWE's first major offtake agreement for its 320-megawatt hydrogen production facility in Emden, and also Salzgitter's first major contract with a hydrogen supplier. With an initial term of seven years, it will sell most of the capacity from the first expansion phase of the Emden facility and meet approximately 6.5% of the hydrogen demand for Salzgitter's low-carbon steelmaking project (the Salcos project). The remaining supply from EWE can, in principle, be used for additional industrial partnerships. In the Salcos project, using natural gas-based direct reduction plants can already reduce CO₂ emissions by 60% compared to the coal and coke used in the blast furnace route. Salzgitter AG's long-term goal is nearly climate-neutral steel production, which can only be achieved through the use of green hydrogen. Overall, the direct reduction plant for the Salcos project can use up to 150,000 tons of hydrogen annually, of which approximately 9,000 tons will be produced by Salzgitter AG itself using a 100-megawatt electrolyzer on its premises.
Gunnar Groebler, CEO of Salzgitter, stated that through the Salcos project, steel production is being gradually converted to a nearly CO₂-free route, with the use of green hydrogen being a key component. The contract with EWE is an important step on this path. Stefan Dohler, CEO of EWE, said the contract demonstrates that supply and demand for green hydrogen can be aligned, and that initial positive signals are emerging from the regulatory framework. He emphasized the need to leverage this momentum to initiate more industrial partnerships and gradually build the market, which still requires competitive electricity prices, viable green hydrogen rules, and long-term investment security.
EWE integrates key parts of the hydrogen value chain, from production, transport, and storage to supply. Within the framework of the Important Project of Common European Interest (IPCEI) "Clean Hydrogen Coastline," electrolysis, storage, and pipeline infrastructure are being built in northwestern Germany. The supply is subject to RFNBO (Renewable Fuels of Non-Biological Origin) certification, and EU regulations on additionality and temporal and geographic correlation of electricity procurement could significantly increase the production costs of green hydrogen. Both companies are committed to feasible adjustments to EU regulations, including extending the transition period for additionality and more flexible hourly electricity requirements.
The federal government and the state of Lower Saxony made the signing of this contract possible through funding. Gitta Connemann, Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Energy, stated that the federal government is providing €925 million to support Salzgitter's steel production transformation and €267 million to support hydrogen production in Emden. Olaf Lies, Minister President of Lower Saxony, said that Lower Saxony is integrating renewable energy generation, efficient ports, storage, and industry into a unified hydrogen economy. With a significant share of Europe's planned large-scale projects for green hydrogen production in Germany, approximately 1,800 kilometers of hydrogen core network within the state, and billions of euros in IPCEI funding, the foundation is being laid for added value and secure industrial jobs.
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