#dekarbonisierung-energieeffizienz 13.10.2025

Saarhütten secures billion-euro funding for climate-neutral steel production

©Saarstahl
SHS is constructing a new direct reduction plant and two electric arc furnaces at its sites in Dillingen and Völklingenfurnaces at its Dillingen and Völklingen sites, which will gradually replace the existing blast furnaces and converters (pictured: converter at the LD steelworks in Völklingen). Image: Saarstahl

The SHS – Stahl-Holding-Saar Group, with its subsidiaries Dillinger and Saarstahl, has reached a crucial milestone on the path to climate-neutral steel production. An international banking consortium is providing a total of €1.7 billion in loans. This marks the successful completion of the financing for the Power4Steel transformation programme.

“This is another key milestone on our path towards a low-carbon future,” emphasises SHS CEO Stefan Rauber. The financing provided by the banking consortium for the Power4Steel green steel project combines corporate and investment financing. The investment financing is guaranteed by the export credit agencies OeKB from Austria and SACE from Italy. The financing is supplemented by the company’s own funds as well as direct grants from the German federal government and the Saarland from the €2.6 billion programme for the transformation of the Saarland steel industry.
As part of the Power4Steel project, a new direct reduction plant and two electric arc furnaces are being built at the Dillingen and Völklingen production sites, which are set to gradually replace the existing blast furnaces and converters. This future hydrogen-based steel production promises a significant reduction in CO₂ emissions: emissions are set to be cut by around 55 per cent by 2030, with plans for completely climate-neutral production by 2045. In the long term, SHS aims to become the largest producer of green steel within its peer group.
Source: SHS Group