Mannesmann Grossrohr (MGR) and Mannesmann Line Pipe (MLP), both Salzgitter subsidiaries, will construct almost 110km of pipeline for Salzgitter’s green steel operations.

The firms will complete separate sections of the long-distance FGL 702 pipeline between Bad Lauchstädt and Salzgitter, which will eventually carry green hydrogen for use in Salzgitter’s Salcos direct reduced iron (DRI) project.

A direct source of the hydrogen has not been confirmed. However, the new 110km installation will connect to Germany’s 9,000km hydrogen core network.

MGR will be responsible for 70.6km of pipeline between Salzgitter and Wefensleben, while MLP will take on 38.2km from Angersdorf to Preußlitz.

A timeline for the project’s completion remains unspecified, while pipes are expected to be delivered from February 2027, according to Salzgitter.

It will likely meet demand for the second phase of the steelmaker’s DRI project, which was delayed until 2028 or 2029 last year. This phase will see third-party hydrogen makers supply gas to Salzgitter under a 100,000-tonne tender.

It will follow the start-up of a 100MW electrolyser at Salzgitter’s Flachstahl site.

The Salcos program recently received a €322m ($379.9m) boost from the German Federal Ministry for Economic Affairs on top of €1bn ($1.8bn) originally committed in 2022 through the European Important Projects of Common European Interest scheme.

Although green hydrogen for DRI could be a key decarbonisation solution, major players have backed away from plans to transition the process amid high costs.

The world’s second-largest steelmaker, ArcelorMittal, delayed final investment decisions on its decarbonisation projects, despite securing some €3.5bn in subsidies for its DRI installations.