Primetals signs contract to construct new DRI steel plant in Germany

Primetals Technologies has signed contracts with German steel producer Dillinger and its subsidiary Rogesa for the construction of a new complex in the country, the company said in a statement Oct. 11.

The new complex will replace the current blast furnace-based production in Dillinger and will feature a direct-reduced iron plant, to be constructed in partnership with DRI technology provider Midrex Technologies, and an electric arc furnace plant comprising two twin ladle furnaces, the company said.

The plant will produce both hot DRI and cold DRI with an annual capacity of 2 million metric tons per year and would help Dillinger and Rogesa meet their goal of reducing CO2 emissions by 4.8 million metric tons per year within six years, it said.

“The transition to green steel production will not happen overnight, we will see a step-by-step process towards carbon neutrality,” said Andreas Viehböck, head of Upstream Technologies at Primetals Technologies.

“With this investment, Dillinger and ROGESA are set to reach their mid- to long term goals in terms of decarbonization.”

The plant will be operated with a mix of natural gas and hydrogen, allowing for a carbon footprint reduction of more than 50% compared to BF-based steelmaking, Primetals added.

“The decision by Dillinger and Rogesa for Midrex Flex technology allows them to transition to hydrogen-based ironmaking at the pace that matches the availability of sufficient gas supply while reducing their current CO2 emissions significantly,” Midrex President and CEO KC Woody, said.

“DRI-based steelmaking provides a pathway to a sustainable future, both economically and environmentally, and our technology solutions offer the flexibility and performance to turn promise into success.”

Platts assessed Northwest European hot-rolled coil carbon-accounted steel at $604.69/mt ex-works Ruhr Oct. 10, down $6.46/mt on the day, S&P Global Commodity Insights data showed.