Pioneering Green Steel Technologies Across Europe

SMS Group has established itself as the vanguard of the steel industry's green transformation, deploying cutting-edge technologies that promise to revolutionize one of the world's most carbon-intensive industries. This autumn, the Mönchengladbach-based engineering firm will take control of the construction site at thyssenkrupp Steel in Duisburg, Germany, where a state-of-the-art direct reduction plant is being built. This facility represents a fundamental shift in steelmaking technology, replacing traditional carbon-intensive blast furnaces with hydrogen-based reduction processes that significantly reduce carbon emissions. "We are involved in a large number of leading projects around the world aimed at decarbonizing the metals industry. This highlights the key role we play," says Jochen Burg, emphasizing the company's strategic position at the forefront of industry transformation. The Duisburg project is particularly significant as it represents one of Europe's largest industrial decarbonization initiatives, demonstrating the commercial viability of green steel production at scale in a traditional steel manufacturing heartland.

Swedish Venture Showcases Hydrogen-Powered Innovation

In Sweden, SMS Group's partnership with Stegra is setting new benchmarks for climate-neutral steel production, with operations scheduled to commence at the end of 2026. This pioneering facility will be the world's first steel plant operated entirely with green hydrogen, eliminating fossil fuels from the steelmaking process. The project leverages Sweden's abundant renewable energy resources to produce hydrogen through electrolysis, creating a truly carbon-neutral production cycle. Beyond the environmental benefits, this venture demonstrates the commercial viability of hydrogen-based steelmaking, potentially establishing a blueprint for future facilities worldwide. The Stegra project represents a complete reimagining of the steelmaking process, incorporating innovative technologies across the production chain, from raw material handling to final product finishing. SMS Group's comprehensive approach includes not only the core hydrogen-based reduction technology but also complementary systems designed to optimize energy efficiency and resource utilization throughout the facility.

Saarstahl's Electric Arc Furnace Sets New Industry Standards

Adding to its portfolio of transformative projects, SMS Group has secured an order from Saarstahl for one of the world's most powerful alternating-current electric arc furnaces designed specifically for CO₂-neutral steel production. This advanced furnace will enable Saarstahl to melt recycled steel and directly reduced iron using electricity rather than coal, dramatically reducing carbon emissions while maintaining high-quality output. The electric arc furnace represents a critical component in the steel industry's transition pathway, offering a flexible production method that can utilize both scrap steel and directly reduced iron as feedstock. This versatility allows steelmakers to adapt their production processes based on material availability and market conditions while consistently reducing environmental impact. The scale and power of the Saarstahl furnace push the boundaries of current technology, demonstrating SMS Group's engineering capabilities and commitment to developing solutions that meet the industry's evolving needs.

Comprehensive Technology Portfolio Drives Transformation

SMS Group's leadership in green steel extends beyond individual flagship projects to encompass a comprehensive portfolio of technologies addressing various aspects of sustainable steel production. The company has developed solutions spanning the entire steel manufacturing process, from raw material preparation and primary reduction to secondary metallurgy and finishing operations. These technologies include advanced energy recovery systems that capture and repurpose waste heat, precision control systems that optimize resource utilization, and innovative material handling solutions that reduce process losses. By offering this integrated suite of technologies, SMS Group enables steelmakers to implement customized decarbonization strategies tailored to their specific operational contexts, resource availability, and regulatory environments. This holistic approach recognizes that the industry's transformation will follow multiple pathways rather than a single universal solution, requiring flexible technologies that can be adapted to diverse circumstances.

Market Dynamics Accelerate Industry Transformation

The acceleration of green steel projects reflects profound shifts in market dynamics, with increasing pressure from regulators, investors, and customers driving demand for lower-carbon steel products. European steelmakers face particularly strong incentives to reduce emissions due to the EU's carbon pricing mechanisms and increasingly stringent environmental regulations. Simultaneously, downstream industries such as automotive manufacturing and construction are seeking to reduce their embedded carbon footprints, creating premium markets for low-carbon steel. SMS Group has positioned itself strategically to capitalize on these trends, developing technologies that enable steelmakers to meet evolving market demands while maintaining competitiveness. The company's project portfolio demonstrates that decarbonization is no longer merely a theoretical aspiration but is rapidly becoming an operational reality across the industry, with major producers committing substantial investments to transform their production processes.

Technology Transfer Enables Global Implementation

While European projects currently dominate SMS Group's green steel portfolio, the company is actively working to transfer these technologies to global markets, recognizing that decarbonization is a worldwide challenge requiring regionally adapted solutions. The expertise developed through flagship projects in Germany and Sweden provides a foundation for implementing similar technologies in diverse geographical contexts, with appropriate modifications to accommodate local conditions such as energy availability, raw material access, and existing infrastructure. This global perspective is crucial as steel production continues to grow in emerging economies, where decisions made today will shape emissions profiles for decades to come. SMS Group's international presence, with operations across major steel-producing regions, facilitates this technology transfer process, enabling the company to support decarbonization efforts worldwide while adapting solutions to local requirements and constraints.

Research Partnerships Advance Next-Generation Solutions

Looking beyond current projects, SMS Group is investing in research partnerships to develop next-generation green steel technologies that promise even greater emissions reductions and operational efficiencies. These initiatives explore emerging approaches such as molten oxide electrolysis, advanced hydrogen storage solutions, and integrated carbon capture utilization systems. By collaborating with academic institutions, research organizations, and innovative startups, the company aims to accelerate the development and commercialization of breakthrough technologies that could further transform the industry. This forward-looking research strategy complements SMS Group's current project portfolio, ensuring the company maintains its technological leadership as the industry continues to evolve. The combination of practical implementation experience gained through current projects and insights from fundamental research creates a powerful innovation ecosystem that drives continuous improvement in decarbonization technologies.

Economic Viability Underpins Sustainable Transformation

While environmental benefits drive much of the momentum behind green steel initiatives, SMS Group's approach emphasizes that sustainable production must also be economically viable to achieve widespread adoption. The company's technologies are designed not only to reduce emissions but also to enhance operational efficiency, improve product quality, and reduce resource consumption, creating business cases that extend beyond regulatory compliance. This economic perspective is particularly important as the industry navigates the transition period, during which green steel technologies must compete with established production methods that benefit from decades of optimization and scale economies. By demonstrating that decarbonization can deliver economic as well as environmental benefits, SMS Group is helping to accelerate industry transformation, convincing even skeptical stakeholders that green steel represents the future of the industry rather than merely a regulatory burden.

Key Takeaways:

• SMS Group is constructing thyssenkrupp Steel's direct reduction plant in Duisburg and developing the world's first steel plant operated entirely with green hydrogen for Sweden's Stegra, scheduled to begin climate-neutral production by late 2026.

• The company has secured an order from Saarstahl for one of the world's most powerful alternating-current electric arc furnaces designed specifically for CO₂-neutral steel production, demonstrating its technological leadership in sustainable steelmaking.

• Beyond individual projects, SMS Group offers a comprehensive portfolio of decarbonization technologies spanning the entire steel manufacturing process, enabling customized transformation strategies for steelmakers worldwide while ensuring economic viability alongside environmental benefits.