German transmission operator Ontras Gastransport has commissioned two subsidiaries of steelmaker Salzgitter AG to construct nearly 110 kilometres of pipeline, a critical step in connecting industrial hubs to the nation’s emerging hydrogen economy.

The project involves Mannesmann Grossrohr (MGR) and Mannesmann Line Pipe (MLP), which will build separate sections of the FGL 702 long-distance pipeline. 

This infrastructure is designed to transport green hydrogen between Bad Lauchstädt and Salzgitter, specifically to fuel the steelmaker’s "Salcos" direct reduced iron (DRI) project.

The deal marks a significant logistical advancement for Germany’s 9,000-kilometer hydrogen core network. 

MGR is slated to produce 70.6 kilometres of pipeline connecting Salzgitter and Wefensleben, while MLP will manufacture 38.2 kilometres stretching from Angersdorf to Preußlitz.

According to company statements, pipe deliveries are scheduled to begin in February 2027.

While a final completion date for the full installation remains unspecified, the timeline aligns with the second phase of the Salcos program, which was recently rescheduled for 2028 or 2029. 

This phase expects to utilize 100,000 tonnes of hydrogen sourced from third-party suppliers via a competitive tender.

The infrastructure build-out comes as the German government ramps up its financial commitment to decarbonizing heavy industry. 

The Salcos initiative recently received a €322 million ($349 million) boost from the Federal Ministry for Economic Affairs, adding to the €1 billion previously secured through European Union subsidies.

Despite the momentum in Lower Saxony, the broader transition to green hydrogen faces economic headwinds. 

High energy costs have caused other industry giants, such as ArcelorMittal, to hesitate on final investment decisions for similar DRI installations despite billions in available subsidies.

Salzgitter’s project will initially be supported by a 100-megawatt electrolyser at its Flachstahl site, but the new FGL 702 pipeline will serve as the primary artery for the massive volumes of gas required to replace coking coal in the steelmaking process.