Prime Minister Anke Rehlinger visits Stahlwerk Bous: Setting the course for green steel with green energy

Saarland’s Prime Minister and members of GMH Gruppe discussed the potential measures needed to successfully continue the transformation of the company’s site towards climate neutrality.

Saarland’s Prime Minister Anke Rehlinger visited Stahlwerk Bous (GMH Gruppe member), with the aim of exploring new ways to ensure the future viability of steel production in the region. Together with leading members of GMH Gruppe, she discussed how the company could continue to expand its production of green steel, as well as the framework conditions politicians could create to achieve this. In addition, Rehlinger observed the current situation of the steel mill and the development of the entire GMH Gruppe.

After a tour of the production facilities in Bous, Prime Minister Rehlinger praised the steadily increasing amount of climate-friendly ‘green steel’ being produced at the GMH Gruppe’s facility. “As a permanent fixture in the Saarland economy, both the steel mill and the entire group of companies are key pillars for the further economic and technical development of our state, as well as the transformation of the steel industry towards CO₂ neutrality,” said the impressed Rehlinger. “The aim here is to create a framework that provides planning security for future investments.”

Stahlwerk Bous’ steel mill is one of four GMH Gruppe sites where an electric arc furnace is used in steel production. This technology reduces CO² emissions by a factor of five compared with the conventional blast furnace process.

“We have a clear strategy on how our group intends to achieve climate neutrality by 2039,” said management board member and GMH Gruppe co-owner, Dr. Anne-Marie Großmann. “To achieve this, the group needs renewable energies. Already today, 30 percent of the purchased electricity is certified as ‘green’”. In addition, the company is investing in its own power generation, for example with solar plants, as well as concluding Power Purchase Agreements (PPAs) to further increase the proportion of green power. “We need to replace natural gas with ‘green’ hydrogen in the future. To do this, we have initiated projects with both regional and international partners,” Großmann continued. “Being connected to future hydrogen infrastructure is essential for achieving the GMH Gruppe’s climate targets,” she concluded.

Dr. Alexander Becker, CEO of the GMH Gruppe, drew attention to the successes already achieved at the Bous steel mill, as well as the upcoming challenges, which include the current electricity prices. “The German industry – which includes the GMH Gruppe – is suffering very badly from high energy costs. We are currently paying around five times as much for electricity compared to our competitors in China, India, the USA or Turkey,” he revealed. “Green steel is essential for a climate-neutral economy and a climate-neutral Germany. GMH Gruppe wants to continue to proactively drive this transformation. Considering the high financial costs entailed, however, we will only be able to do this if we are able to be competitive.”

In addition to a competitive electricity price, a clear political commitment to green steel is also required. “Although the issue of sustainability is very present in politics and society, it still plays a relatively small role in the awarding of public contracts. That has to change,” Monika Boh, Managing Director of Stahlwerk Bous GmbH. “In the context of green lead markets, the government must set a good example and buy low-CO₂ products directly and indirectly – even if they are somewhat more expensive than those with conventional steel,” Boh added.

All parties emphasised their desire to continue this initiated dialog between politics and industry in order to secure the future of the Bous site as well as to further the development of ecological steel production in a timely manner to achieve concrete perspectives and goals.

About GMH Gruppe

GMH Gruppe is a full-range supplier of recycled input material through ready-to-install components and one of the largest privately owned metalworking companies in Europe. The Gruppe comprises 20 medium-sized production companies in the steel, forging and casting industry and is present in more than 50 countries. With around 6,000 employees, the GMH Gruppe generated annual sales of around two billion euros in 2021. GMH Gruppe is a pioneer in sustainable steel production and has also been accepted into the “Association of Climate Protection Companies”. By recycling scrap metal, the company produces green steel and thus makes an important contribution to the circular economy. The use of electric arc furnaces at four of its sites reduces carbon dioxide emissions by a factor of five compared with conventional blast furnaces. This, in turn, also reduces the carbon footprint of GMH’s customers. Global customers include companies from the automotive industry, mechanical and plant engineering, railroad technology, power generation, transport logistics as well as the sectors, aerospace, agriculture and construction machinery. The GMH Gruppe has set itself the goal of being completely climate-neutral by 2039.

About Stahlwerk Bous GmbH

Stahlwerk Bous GmbH from Bous/Saarland is a manufacturer of ingots and continuous cast products in large dimensions. Stahlwerk Bous is already one of the most climate-friendly steel companies in Germany. With its comparatively low-CO2 value chain, in which scrap is melted down in the electric arc furnace and recycled into new steel, it makes an important contribution to the circular economy and is a pioneer in sustainable steel production. The GMH Gruppe company supplies starting material for tube and ring rolling mills as well as open-die and closed-die forging. The products are mainly used in power generation, mechanical engineering and rail technology.