The energy service provider EWE and Salzgitter Flachstahl, a subsidiary of Salzgitter AG, have signed a long-term contract for the supply of green hydrogen. The contract signing took place at the EWE representation in Berlin, in the presence of the Parliamentary State Secretary in the Federal Ministry for Economic Affairs and Energy, Gitta Connemann, as well as the Prime Minister of Lower Saxony, Olaf Lies.
From 2030, a delivery of approximately 10,000 tonnes of hydrogen per year via the hydrogen core network is planned. The contract initially has a term of seven years. According to the company, this will market a significant part of the first expansion stage of the Emden plant and cover around 6.5 percent of the hydrogen demand of the Salcos (Salzgitter Low CO2 Steelmaking) steel program.
Direct reduction with green hydrogen enables climate-neutral steel
In the Salcos program, green hydrogen is to be used in a direct reduction plant. According to Salzgitter AG, this can process up to 150,000 tonnes of hydrogen per year. Salzgitter AG plans to produce around 9,000 tonnes of this in its own 100 MW electrolysis plant on the steelworks site. Even with the use of natural gas in direct reduction, CO2 emissions can be reduced by 60 percent compared to the traditional blast furnace route. However, almost climate-neutral steel production is currently only possible with green hydrogen. In other processes, CO2 would have to be captured afterwards.
The delivery is subject to RFNBO certification according to European guidelines on additionality as well as the temporal and geographical correlation of electricity procurement. Both companies are advocating for adjustments to the EU guidelines. Specifically, they are calling for an extension of the transition periods for additionality and more flexible hourly electricity requirements.
Federal and state support, companies demand better framework conditions
The federal government supports the conversion of steel production in Salzgitter with 925 million euros and hydrogen production in Emden with 267 million euros. "Today, funding becomes progress," said Connemann at the contract signing.
Gunnar Groebler, CEO of Salzgitter AG, linked the contract with an appeal to politics: "The hydrogen ramp-up still faces high hurdles. Comprehensive measures are still needed to close the cost gap and minimize entrepreneurial risks. Otherwise, this contract remains an exception."
EWE CEO Stefan Dohler emphasized: "This contract is a milestone, but not yet the goal. It shows that supply and demand for green hydrogen can come together." A sustainable market still requires competitive electricity prices, practical rules for green hydrogen, and long-term investment security.
Andreas Kuhlmann, CEO of the German Hydrogen Association (DWV), also welcomes the contract conclusion: "This supply contract is encouraging because it shows that the hydrogen market is gaining substance step by step. When a major producer like EWE and a major industrial consumer like Salzgitter come together for green hydrogen, it becomes visible how a market emerges: not abstractly, but along concrete supply quantities, real investments, and industrial responsibility.
First major contract for Emden electrolysis
It is the first major purchase contract for hydrogen from the 320 MW production plant that EWE is currently building in Emden - the plant is therefore not yet fully utilized.
As part of the IPCEI major project "Clean Hydrogen Coastline" in northwestern Germany, EWE is bundling essential parts of the hydrogen value chain from production through transport and storage to delivery.
