Driving Europe’s Largest Green Steel Shift
SHS Group awards key DRI and EAF contracts, cutting CO2 by up to 55% through hydrogen-based steelmaking, backed by €4.6bn investment and H&Z project leadership.
The SHS – Stahl-Holding-Saar Group (SHS Group) awarded the central contracts for the direct reduction plant (DRI) and the two electric arc furnaces (EAF). The order for the central aggregates is an important milestone on the way to a ‘green’ future for the Saarland steel industry.
The plants will use hydrogen and scrap to reduce CO2 emissions by up to 55%. This corresponds to an annual saving of 4.8 million tonnes of CO2. This makes Saarland’s steelmakers the only companies that can achieve the EU’s ‘Fit for 55’ climate target by 2030 in the first step.
The total investment for the conversion to ‘green’ steel production, including environmental design, infrastructure and logistics measures, amounts to around 4.6 billion euros.
H&Z Management Consulting has been supporting this project in a variety of ways since September 2022:
- Establishing a project structure and developing award scenarios in an extreme bidding market with oligopolistic/monopolistic supplier markets.
- Restructuring and development of project and plant purchasing and adaptation to Power4Steel transformation.
- Development and implementation of procurement processes that ensure funding-compliant procurement.
- Interim management of major tenders over 14 months until contract award and ramp-up.
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The support provided by H&Z was characterised by comprehensive forward thinking and the inclusion of a wide range of aspects such as financing, guarantees, building permits and the accounting of funding. This experience has also helped the organisation enormously.
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Being able to apply my experience from large-scale projects in the fossil oil industry to this decarbonisation project, of all things, is, for me, a significant contribution to securing the future of Germany as a business location.
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Mission accomplished – The SHS board awards the central contracts, from left to right: Matthias Schillinger (project purchasing), Dr. Elmar Sauerwein (H&Z, Senior Project Manager), Markus Lauer (finance/purchasing), Daniel Van der Hout (sales), Dr. Stefan R (CEO), Dr. Peter Maagh (Technology), Friedhelm Felten (Commercial Prog. Leader), Jonathan Weber (Transformation), Patrick Naumann (New Construction), Joerg Disteldorf (Personnel), Martin Reinicke (Communication), Frederic Geiger (Project Purchasing) (Photo: Uwe Braun).
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