Saarstahl EAF conversion on track

The supervisory boards of several entities related to Germany-based steelmaker Saarstahl AG have “jointly resolved” to invest 3.5 billion euros ($3.7 billion) to replace existing blast furnace/basic oxygen furnace equipment at its Völklingen, Germany, complex with electric arc furnace (EAF) steel technology.

“The decision by the supervisory boards enables the decarbonization of Saarland’s steel industry," Saarstahl says. "Starting as early as 2027, up to 3.5 million tons of low-carbon steel will be produced annually in Saarland and carbon emissions will be cut by 4.9 million tons.” The Saar region is in western Germany near its border with France.

In addition to replacing blast furnaces with EAFs in Völklingen, a direct-reduced iron (DRI) plant for the production of sponge iron is being planned at a nearby location. The news release announcing the advancement of the project does not mention what the potential scrap consumption of the planned EAF capacity might be.

Saarland says the finalization of the decision is subject to the approval of public funds. Regarding that layer of funding, “The necessary documents have been submitted, but the approval process has not yet been completed,” the steel producer adds.

Should the plan proceed, Saarland will engage in what it calls “transformation branding” to refer to post-project products as “Pure Steel +.” “The message of Pure Steel + is that Saarland’s steel industry will retain its long-established global product quality, ability to innovate and culture, even [after] the transformation," the company says. "The '+' refers to the carbon neutrality of the products.”

“Today’s resolution is an important step on the path to green steel production in Saarland," Saarstahl board member Jörg Köhlinger says. "The transformation, which also takes into account the interests of employees, offers great opportunities for value creation in line with social and environmental concerns [and] with sustainable employment prospects in Saarland.”