The German federal government and the state of Lower Saxony have raised total subsidies for Salzgitter’s SALCOS® program to EUR 1.3 billion. This new EUR 322 million allocation fills a financial gap caused by the loss of previous funding sources, ensuring the transition remains on track for its 2027 launch.

The European Commission approved this supplementary aid on February 6, 2026. Under the agreement, Berlin provides 70% of the capital while the state covers the remainder. This investment enables the company to replace coal-fired blast furnaces with a new installation initially running on natural gas and, eventually, green hydrogen.

Regional ministers said the move secures industrial competitiveness and proves that decarbonized heavy industry remains viable in the global market.