Pioneering green transformation in the manufacturing sector
In an era where environmental concerns and sustainability have taken centre stage, prominent steel company Dillinger stands as a beacon of transformative change in the manufacturing landscape. With a rich history spanning over three centuries, Dillinger has not only survived the test of time but has embraced innovation to pave the way for a more sustainable future.
Speaking with The Zone, Pulin Parikh, Managing Director, Dillinger Middle East, provided detailed insights into the concrete steps being taken and the projects in the pipeline to achieve net zero emissions between 2045 – 2050.
Dillinger’s ambitious plan to achieve carbon neutrality by 2050 hinges on a comprehensive and significant transformation project. A pivotal aspect of Dillinger’s strategy is the adoption of alternate sources of energy. This transition away from conventional carbon-based fuels is intended to substantially diminish the carbon footprint of the steel-making process. To realise this, Dillinger is gearing up for the full utilisation of electricity generated from renewables and green hydrogen, marking a decisive step towards achieving its carbon neutrality goal.
We plan to incorporate hydrogen-rich gases into our blast furnace operations, gradually increasing their use as the transformation project advances. Hydrogen’s status as a cleaner alternative to traditional carbon-intensive fuels aligns with Dillinger’s commitment to environmentally conscious practices.
Dillinger’s transformation project encompasses various phases. Central to our carbon neutrality plan is the replacement of our existing blast furnaces and Linz-Donawitz (LD)-steel plants. In their place, we are implementing a new steel-making route that leverages Direct Reduced Iron (DRI) production and steel melting in Electric Arc Furnaces (EAFs). The commissioning of a 2.5 million-ton DRI plant in Dillingen, Germany by 2030 is a significant milestone. Additionally, the establishment of two EAFs with a collective capacity of approximately 3.5 million tons of crude steel annually by 2030 further underscores our dedication to reducing carbon emissions. This will be augmented by a third EAF with an output of around 1.2 million tons of liquid steel by 2045.
As per our plan, we anticipate achieving a 55-60 per cent reduction in carbon emissions by 2030 and an even more impressive over 80 per cent reduction by 2045. This commitment aligns with our broader objective of producing “green steel” – a manufacturing process that significantly minimises the carbon footprint.
Our transformation journey entails significant demands for resources. Hydrogen consumption estimates range from 2.7 TWh (around 55,000 tons) to 6.4 TWh (approximately 150,000 tons), contingent on the project phase. Additionally, substantial quantities of recyclable scrap metal (replacing iron ore) will be used for the sustainability-oriented steel production process.
This transformational effort aligns with Dillinger’s overarching commitment to environmental responsibility. We go beyond regulatory compliance, exceeding German and European environmental provisions. Notable investments have been made to ensure compliance with high standards. For example, the implementation of a second housing for the steel plant aims to minimise dust emissions. Additionally, the innovative utilisation of blast furnace dome gas for electricity generation showcases the company’s commitment to sustainable practices.
Our association with Jafza spans 24 years, during which we have established a strong and mutually beneficial relationship. Jafza has consistently supported our expansion efforts, offering additional space and support services whenever needed. We are immensely grateful for their ongoing assistance and consider our partnership enduring and valuable.
In the realm of supply chain management, Jafza has been an invaluable ally. Their timely, efficient and proactive services have aided us in customs clearance and cargo movement across the region. Leveraging their platforms and DP World’s efficient support services, we have been able to expand our commercial footprint both regionally and internationally.
Our facility in Jafza houses nearly 25,000 tons of steel, and three magnetic lift cranes. These cranes facilitate the movement of steel plates, and their loading onto flatbed trucks and containers for delivery. Given the weight variations of steel plates, ranging from 1,000 to 28,000 kilograms, our efficient and cost-effective handling stands out as a distinct advantage that benefits our customers.