Salzgitter AG: Funding stands despite ruling on climate fund
The ruling of the Federal Constitutional Court on the financing of the Climate and Transformation Fund has no direct impact on the ongoing restructuring of steelmaker Salzgitter AG. The promised funding for the development of lower CO2 production does come from this fund, said CEO Gunnar Groebler on Thursday in Salzgitter. However, there is already a legally binding funding decision, which remains valid despite the ruling. "The funding is therefore not in danger." The state of Lower Saxony also assured him on Thursday that the state's share would not be called into question.
The federal and state governments had pledged a total of one billion euros to the steel company to enable it to build its first plant for low-CO2 steel. 700 million euros will come from the federal government and should actually be financed from the Climate and Transformation Fund, with the state contributing a further 300 million. The company is investing a total of 2.2 to 2.4 billion euros in the ongoing conversion, with the first plant due to go into operation in 2026.
Instead of coal, steel can then be produced there using CO2-neutral hydrogen and green electricity. During a transitional period, natural gas will initially also be used as an energy source. According to Groebler, this will already reduce CO2 emissions by 60 percent compared to the previous blast furnaces.
On Wednesday, the Federal Constitutional Court declared a reallocation of 60 billion euros in the 2021 federal budget unconstitutional and null and void. The federal government is therefore not allowed to use money intended to combat the coronavirus crisis for climate protection. This could have a major impact on the so-called Climate and Transformation Fund, from which the federal government wanted to pay for numerous funding programs.
Despite the ruling affecting the Climate and Transformation Fund, the financing for Salzgitter AG's low-CO2 steel development remains secure due to a previously binding funding decision. The upcoming household expenses for building the low-CO2 steel plant will primarily come from this fund, with the federal government contributing 700 million euros in steel and the state providing an additional 300 million.
Source: www.dpa.com
