BERLIN, July 31 (Bernama-dpa) -- The multibillion-euro conversion of steelmaker Salzgitter to greener production will have a lasting impact on several industries, German Economy Minister Katherina Reiche said on Thursday during a visit to the company in the northern state of Lower Saxony, reported German news agency (dpa).
Reiche said the project showed that one of the most emissions-intensive industries could be transformed while preserving jobs.
Salzgitter began converting its steelworks at the end of 2023. Instead of coal-fired blast furnaces, steel will be produced in a new facility that can initially run on natural gas and later on green hydrogen.
The first green steel plant is due to come online in 2027, with the aim of ultimately reducing CO2 emissions by 95 per cent. The federal government and the state of Lower Saxony are funding the project with just over €1.3 billion (US$1.5 billion).
Reiche noted that the switch would also allow companies in other sectors to source sustainable products in Germany rather than having to procure them abroad. She said the project had also acted as a catalyst for further transformation in the initially hesitant automotive industry.
Just days ago, Salzgitter chief executive Gunnar Groebler voiced his frustration with European Commission plans to reform the emissions trading system, saying they threatened investment in climate change measures and penalised companies that had already begun their transition.
The European Commission had previously proposed weakening a key climate change instrument.
"An industrial policy that changes the rules after the fact must not leave pioneer companies out in the cold," Groebler wrote in response on LinkedIn. He called on the European Parliament and member states to make improvements during the legislative process.
--BERNAMA-dpa