The new state-of-the-art forging furnace is designed for future operation with green hydrogen. Schmiedewerke Gröditz Schmiedewerke Gröditz talks about a milestone towards carbon neutrality. However, the company emphasises its call for government support for green hydrogen infrastructure.
Schmiedewerke Gröditz GmbH has officially commissioned a new state-of-the-art forging furnace, designed for future operation with green hydrogen. The company speaks of a significant step towards achieving climate-neutral steel production by 2039. The €3.95 million investment in the new furnace represents not only more efficient operations, but also make Gröditz´s oven ready for the anticipated switch from natural gas to green hydrogen, underscoring the company’s proactive approach to sustainable innovation.
“We have a clear roadmap to climate neutrality,” emphasized Dr. Jens Overrath, COO of GMH Gruppe. “Currently, Schmiedewerke Gröditz emits approximately 132,000 tons of CO2 annually. Our plan is to reduce this to zero by 2039 through the substitution of fossil fuels with hydrogen and increased electrification of our processes. In its final stage, this transition will save 65,000 tons of CO2 annually, with an additional 64,000 tons reduced by utilizing green electricity from renewable sources. Moreover, the replacement of coal and coke with biogenic coal will save another 3,000 tons of CO2.”
Minister President of Saxony, Michael Kretschmer said: “Saxony is a steel state and should remain so in the future.“ According to Kretschmer, in an energy-intensive sector such as the steel industry, affordable electricity prices have absolute priority. This must also apply to steel production using hydrogen. The Free State of Saxony is committed to ensuring that small and medium-sized companies from Saxony also benefit from the expansion of the hydrogen core network, said the Minister President.
Overrath emphasized the need for political support to build the necessary infrastructure for green hydrogen. “The availability of green electricity and hydrogen at competitive prices is crucial for our transformation. We are investing in our own electricity generation, including a photovoltaic system, and plan to connect to the H2 grid by the end of 2027, provided the necessary political framework is established.”
Dr. Alexander Becker, CEO of GMH Gruppe, further emphasized the need for government action on energy pricing: “We are investing approximately €45 million at the Gröditz site over the next few years. These investments put Schmiedewerke Gröditz in a strong technical position for international competition and lay the foundation for further CO2 reductions. However, our ability to remain competitive hinges on energy costs being aligned with those across Europe. Currently, this is not the case, and a bridge electricity price is essential.”
Source: GMH Gruppe