Handelsblatt reported that Saarland Germany based steel maker SHS wants to convert its production to climate-neutral steel with an extensive investment program. SHS CEO Mr Karl-Ulrich Köhler told Handelsblatt “In order to achieve our CO2 targets, we will have to invest 2.8 billion euros in the first phase. With the first boost, SHS wants to reduce CO2 emissions by 65% by 2030. In the second phase, the emission of greenhouse gas is to be reduced by a total of 80%. This goal is planned for 2045. We will define concrete measures for the remaining CO2 emissions by 2045. In the course of the conversion, Dillinger Hütte and Saarstahl will fundamentally rebuild their plants. We are leaving the old metallurgy 100%. SHS will therefore switch off the first blast furnace in the first phase by 2030 and the remaining second in the next phase. The steel will ultimately be the same, but CO2-neutral.”Mr Köhler however warned of new requirements for the industry, such as the abolition of free CO2 certificates for the steel industry. He said “This would cost billions. Our earnings situation does not allow this & we cannot manage this at the same time as the large investments for the transformation. It is our firm goal to make steel fit for the future. We will therefore convert our sites to the production of green steel, i.e. CO2-neutral steel. This transformation is the greatest challenge in our history. In doing so, you are following the course of the EU Commission, which has set this course. We have committed ourselves to the stated goals and want to protect our environment. For this we have to renew ourselves. But you also have to see that plans are being developed in Brussels that we will hardly be able to fulfill.While answering to “EU wants to limit the free allocation of CO2 certificates & what would the consequences be?’ He said “If this is implemented in the proposed form, then the steel industry as a whole will have to spend several billion euros more in this decade. Our earnings situation doesn't allow for that, we can't do that at the same time as the major investments for the transformation. We hope that Germany and other EU countries will intervene so that we can continue on the course we have taken. But if the money is taken from us because we have to buy additional CO2 certificates on a large scale, then we won't make it.”Under the umbrella of SHS, Saarstahl and Dillinger Hütte produce around 5 million tonnes of steel annually.