In the wake of climate change, the German government made amendments to the Climate Protection Act in summer 2021. In the future the steel industry will have to significantly reduce its CO2 emissions. Therefore, last summer, top representatives of the major German steel companies, the German Steel Federation (Wirtschaftsvereinigung Stahl) and the German metalworkers' union IG Metall met with former German Minister Peter Altmaier to drive forward the implementation of the so-called „Handlungskonzept Stahl“ which had been introduced already in 2020. A central lever of the concept is the conversion of production to low-CO2 and climate-neutral technologies in the long term.
Point 10 of the action plan envisages a gradual reduction in the use of coking coal for steel production and a switch to hydrogen. This conversion is only possible because of the chemical properties of hydrogen as it is suitable for direct reduction of the iron ore used. The high-emission production of liquid pig iron is no longer necessary with this process. Instead, direct reduction using hydrogen produces a solid, so-called "sponge iron" which is refined into crude steel in electric arc furnaces. If "green hydrogen" generated with the aid of renewable energies is used to produce the required hydrogen, it is even possible to produce steel in a virtually climate-neutral way. 4
For this reason, new steelmaking plants are to be designed from the outset to allow the use of hydrogen in addition to natural gas. According to the concept, this applies "not only to "first of it's kind" projects, but to the conversion process as a whole." 5