Green metals are a big opportunity for Australia as part of our Future Made in Australia, and it was awe inspiring to visit Salzgitter AG's massive steel plant today in central Germany, which is embarking on a remarkable transformation from traditional steelmaking to green steelmaking on the journey to net zero.
Over the next nine years, Salzgitter, which is one of Germany's top steelmakers, employing 25,000 people, will gradually replace its three blast furnaces - which rely on coking coal to reduce the iron ore - with direct reduction plants using green hydrogen, and electric arc furnaces.
Its first new direct reduction plant will come online in 2026, and by 2033 when all blast furnaces are gone and the facility is completely transformed, Salzgitter will be consuming 300,000 tonnes of green hydrogen per year.
The impetus for the change is commercial.
Not only are carbon prices high and increasing, but Salzgitter's CEO, Gunnar Groebler, told us that the company's customers - who include automakers like BMW and Volvo, and appliance manufacturers like Miele - are keen to get their hands on green steel for their products. The low-carbon product comes at a premium but their customers are willing to pay it.
The visit, which I did together with a very enthusiastic delegation of decarb nerds from Australia ;), Australia's new ambassador to Germany, Natasha Smith (GAICD), and the Austrade team, included a walk through of the plant's steel rolling mill. It was honestly one of the most extraordinary sights I've ever seen, and our mouths were agape as red hot slabs of freshly minted steel (~1200 degrees Celsius) - probably no more than 10 metres in length - were transformed within minutes into ~1km long strips of thinly rolled steel along a seemingly endless conveyor belt (photo below courtesy of Salzgitter AG).
In my next life, I think I might like to return as an industrialist!
Thanks to the Australian Trade and Investment Commission (Austrade) team for organising. David Urry Eva Pannhausen Kelly Matthews. And to Salzgitter AG for so graciously hosting us.