German steelmaker SHS – Stahl-Holding-Saar Group (SHS Group) has secured €1.7 billion (USD 1.96 billion) in financing to advance the decarbonisation of its steel production using hydrogen-based technologies.
The funding, arranged through a consortium of national and international banks, combines elements of corporate and investment financing. Export credit agencies OeKB of Austria and SACE of Italy supported the investment component, while both the German federal government and the state of Saarland contributed equity and direct financial assistance under a €2.6 billion transformation programme for the region’s steel industry.
The company’s Power4Steel project will see the construction of a new direct reduction plant and two electric arc furnaces at SHS’s Dillingen and Völklingen sites. These facilities will progressively replace traditional blast furnaces and converters, enabling hydrogen-based steelmaking. SHS aims to cut its carbon dioxide emissions by 55% by 2030 and achieve climate-neutral production by 2045.
As part of its transition strategy, SHS recently signed a long-term agreement with French energy firm Verso Energy, securing the annual supply of at least 6,000 tonnes of green hydrogen.
