Salzgitter AG and Tenova signed a memorandum of understanding for the realization of SALCOS (SALzgitter low-CO2 Steelmaking). Salzgitter intends to order a DRI plant from Tenova with an annual capacity of 2.1 million tons for the future industrial production of directly reduced sponge iron. The plant will be based on Energiron technology, which was jointly developed by Tenova and Danieli. The companies plan to start construction work on the first stage of SALCOS as early as this summer.

SALCOS is designed to significantly reduce CO2 emissions in steel production. The program aims to achieve a gradual transformation process away from carbon-intensive conventional steel production and toward direct reduction with the flexible and increasing deployment of hydrogen. According to Salzgitter, CO2 emissions in the process chain can ultimately be reduced by more than 95%.