BERLIN/SALZGITTER (dpa-AFX) - Steel group Salzgitter is receiving additional funding to support its transition to green steel. The federal government and the state of Lower Saxony have increased the already approved subsidies for the conversion by nearly one third, bringing the total to 1.3 billion Euro, according to statements from both ministries of economic affairs. An additional 322 million Euro will now be provided on top of the 1.0 billion Euro approved in 2022.
The reason for the increase, according to the information provided, is the elimination of other funding sources that had previously been planned. With this newly approved increase, the planned implementation of the project remains secured, the Federal Ministry for Economic Affairs stated. The financing will be provided 70 percent by the federal government and 30 percent by the state of Lower Saxony. The EU Commission granted approval for the supplementary funds under state aid law on 6 February 2026.
Minister Tonne: Funding Strengthens Competitiveness
For Salzgitter, this now means planning security, said Minister for Economic Affairs Grant Hendrik Tonne (SPD). "This strengthens our competitiveness on the world market and we continue to benefit from industrial value creation." Environment and Energy Minister Christian Meyer (Green Party) called it a good and important signal. "Climate-friendly green steel has a future, with Salzgitter AG as a pioneer."
The funding is intended to secure the first stage of the so-called Salcos project in Salzgitter, through which the manufacturer aims to switch to green steel. The conversion in Salzgitter has already been underway since the end of 2023, and the first plant is expected to go into operation in 2027. Instead of being produced in a coal-fired blast furnace, the steel will then be made in a new facility that can initially run on natural gas and later on green hydrogen./fjo/DP/mis
