EU Commission - Billions in funding approved for steel industry
The EU Commission has cleared the way for the climate-friendly restructuring of the Saarland steel industry with billions in state funding. It approved the project, which provides for a direct grant of 2.6 billion euros from the federal and state governments to Stahl-Holding-Saar, as the authority announced on Tuesday.
The aim of the project is to switch from fossil fuels such as coal and coke to hydrogen in the production of steel in the medium to long term. From 2027, up to 3.5 million tons of low-CO2 steel are to be produced annually in Saarland and 4.9 million tons of CO2 saved. More than 14,000 people are employed in the Saarland steel industry.
According to the Federal Ministry of Economics, around two thirds of steel production will initially be converted using new types of blast furnaces. These are due to go into operation in 2027.
The measure will support the goals of the EU hydrogen strategy and the "Green Deal" climate plan, according to the EU Commission. The payment will help to end dependence on fossil fuels from Russia and rapidly advance the green transition. With the "Green Deal", the EU aims to become climate-neutral by 2050. The strategy includes measures in areas such as energy, transport, industry and agriculture.
The federal government pays in particular
The federal government will cover around 70 percent of the 2.6 billion euro funding, with Saarland paying the remaining 30 percent. According to the steel industry, the conversion will cost around 3.5 billion euros in total. Federal Economics Minister Robert Habeck (Greens) announced the funding commitment just over a week ago during a visit to Saarland, but referred to the pending approval from Brussels. This is now available.
The next step is now to prepare the national funding decision, the Ministry of Economic Affairs announced. "This is extremely good news for the industrial transformation in Saarland and throughout Germany," said Habeck.
The state is delighted
Saar Minister President Anke Rehlinger (SPD) spoke of "good news from Brussels". "The climate-friendly restructuring of the steel industry is beginning in Saarland," she said. "This is not only a milestone for the industry and for the climate, but also the start of building a strong hydrogen economy in the region."
The Chairman of the Management Board of Stahl-Holding-Saar and CEO of Aktien-Gesellschaft der Dillinger Hüttenwerke und Saarstahl AG, Stefan Rauber, also welcomed the decision as groundbreaking for the Saarland steel industry. "With our plans, we are pioneers in green steel production in Germany and Europe."
According to the Federal Ministry of Economics, this is the third time, after Salzgitter AG and Thyssenkrupp Steel Europe, that the decarbonization of a steel location in Germany is being promoted with the help of hydrogen. The state aid approval procedure with the EU Commission is still ongoing for another ArcelorMittal project at the Bremen and Eisenhüttenstadt sites.
Press release Federal Ministry of Economics Press release EU Commission
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Source: www.stern.de
