Germany's Industrial Map Is Changing

Germany's Industrial Map Is Changing The industrial map of Germany, the economic engine of the European Union, is undergoing transformation. Leading German steel companies are investing to build a carbon-neutral and sustainable metal industry. Yalçın Ertan, Chairman of the Aegean Region Iron and Non-Iron Metals Exporters Association, noted that Germany's annual iron and steel imports amount to USD 148 billion: "In 2022, out of Turkey's total steel exports of USD 35 billion, we achieved a 24% increase with USD 2.9 billion to our main market, Germany. We are witnessing steel producers coming together on a common mission to reduce emissions stemming from the steel sector, which accounts for approximately 7% of global emissions. Our Association has been working in line with this sustainability mission for some time." he said.

Target to reduce carbon emissions to zero by 100%

Chairman Ertan stated: "Thysen Krupp, which contributes 29% to the total CO2 in Germany's iron and steel production, aims to keep carbon emissions below 30% by 2030 and to reduce them by 100% by 2045. From 2026 onwards, the company plans to use H2 and innovative melting units in direct reduction facilities, and also has projects for converting metallurgical gases through a carbon capture system to be used as synthetic fertilizer and H2. H2 Green Steel plans to establish a 100% hydrogen-powered direct reduced iron production facility with approximately 700-800 MW electrolyzer capacity on a 500 hectare site in the Boden-Lulea region in Sweden as part of its decarbonization goals." he said.  

Recyclable feedstock, renewable energy, low-carbon hydrogen applications, carbon capture methods

Yalçın Ertan continued: "Outokumpu, which has invested more than EUR 450 million over the past 15 years primarily in projects to increase energy efficiency and reduce waste generation, ranks among the important suppliers to the European and American markets for sustainable green production. The company, which uses feedstock with 94% recyclable content, has achieved an 18.4% reduction in CO2 emissions since 2016 and is the first company to commit to a 1.5°C increase target in line with Science Based Target goals. Vulcan Green Steel emphasizes that many green measures must be applied in the chain from mine to metal for steel decarbonization. In this context, circular economy, efficiency, renewable power, low-carbon hydrogen applications, carbon capture methods and fuel switching are among the applicable approaches. Green hydrogen is the most important component in H2 green steel production." he said.

New production facilities with green hydrogen capacity

Noting that Vulcan Green Steel plans to implement a mega green steel project in the Oman region with a USD 3 billion investment, Ertan continued: "The product carbon footprint is targeted to be less than 0.5 tons of CO2 per ton of crude steel. The company currently operates the largest privately-owned integrated steel producer in the Persian Gulf region and a facility with 2.4 million tons capacity using DRI technology. Against the global average carbon footprint of 1.85 tons per ton of steel, the company has achieved 1.05 tons. By increasing renewable energy potential in existing facilities and reducing the current carbon amount below 0.8 tons, and by 2030, a production facility with 5 million tons of green hydrogen capacity is planned to be established in Oman." he said.

Substitution with renewable carbon sources

Yalçın Ertan stated: "Within the mission of creating a carbon-neutral and sustainable metal industry on the SMS Group side, the target is to minimize environmental damage through minimum carbon use. The remaining amount can be substituted with renewable carbon sources such as biochar, gas, or carbon recovered from waste plastics. Emphasizing that work needs to be conducted especially on by-products in steel production, the company has highlighted the method of taking coke oven gas and converting it into synthesis gas, a mixture of hydrogen and carbon monoxide, and feeding it back into the process. Within the framework of the EU Green Deal, decarbonization in production has become an inevitable requirement of our sector. In this context, at an event where different experts, system developers and service providers working on hydrogen and green steel production come together, we aim, as an Association, to have the opportunity to closely follow developments and provide our sector with a different perspective on sustainable production covering the processes and procedures related to green steel production." he concluded.