Commission Decision greenlighting EUR 1 billion aid for Salzgitter AG to decarbonise its steel production published

On 4 October 2022, the Commission approved a EUR 1 billion German aid measure to help decarbonise Salzgitter’s steel production by replacing a blast furnace with a direct reduction plant and an electric arc furnace powered by renewable hydrogen (SA.104276). The project aims to produce 1.9 million tonnes of low-carbon crude steel annually and is expected to cut 3.6 million tonnes of CO₂ emissions each year once operations begin in 2026. It was approved under the 2022 Guidelines on State aid for climate, environmental protection and energy (‘CEEAG’).

The timing of the publication three years after adoption of the decision raises questions regarding effective access-to-justice in practice.

For more information, see the Commission’s decision.