Salzgitter and EWE to supply of Green Hydrogen

Landmark signal for the ramp-up of the hydrogen economy and the decarbonization of industry: EWE/DE and Salzgitter Flachstahl/DE agree long-term supply of 10 000 t/a of green hydrogen.

• 10 000 t/a of green hydrogen from Emden for the SALCOS® program – Salzgitter Low CO2 Steelmaking
• Long-term supply contract concluded between EWE and Salzgitter AG is a first important step on the way to hydrogen-based steel production
• The hydrogen economy is contributing to the long-term resilience and independence of Europe as a business location
• However, market ramp-up still faces hurdles – reliable regulations and political measures required.

This marks a genuine milestone on the course to achieving a functioning hydrogen economy in Germany. The energy service provider EWE and Salzgitter Flachstahl GmbH, a subsidiary of Salzgitter AG, have concluded a long-term agreement on the supply of green hydrogen. The contract was signed in June 2026 at the EWE representative office in Berlin together with Parliamentary State Secretary Gitta Connemann and Lower Saxony’s Minister President Olaf Lies.

First major contract for green hydrogen from Emden
This is the first major purchase agreement for hydrogen from the 320 MW production plant that EWE is currently building in Emden and also marks Salzgitter AG’s first major contract with a hydrogen supplier. The plan is to supply around 10 000 t/a via the hydrogen core network as from 2030. The contract, which runs for an initial term of seven years, will market a significant part of the first expansion stage of the plant in Emden and cover around 6.5 % of SALCOS®‘s hydrogen requirements. Further delivery volumes from EWE will therefore also be available for additional industrial partnerships.

The green hydrogen sourced from Emden is to be used in Salzgitter AG’s SALCOS® program – Salzgitter Low CO2 Steelmaking. In this context, the use of natural gas in a direct reduction plant is already capable of achieving a 60 % reduction in CO2 emissions compared to the blast furnace route with coal and coke. However, Salzgitter AG’s long-term goal remains the virtually climate-neutral production of steel, which can only be achieved through the use of green hydrogen. Water will be produced, instead of CO2. In total, up to 150 000 t/a of hydrogen can be used in the direct reduction plant of the SALCOS® program. Salzgitter AG will produce around 9000 t of this itself in a 100 MW electrolysis plant on its own steelworks site.

Ramping up the hydrogen economy in Germany, however, will require additional inputs and efforts. Further the implementation of additional measures is urgently called for in order to make renewable hydrogen an internationally competitive energy source. This includes, for example, the timely and reliable extension of the electricity price compensation for electrolysers and a prompt revision of the green electricity criteria for renewable hydrogen.

With the current supply contract, however, both companies are already entering into a long-term economic commitment on the producer and customer side. This is a strong signal for Lower Saxony as an industrial location: Industry is taking responsibility and concluding robust agreements well before the market for green hydrogen is fully established.