Thyssenkrupp Steel secures revised funding terms for decarbonization project

Thyssenkrupp Steel has received definitive approval for revised funding requirements for its tkH2Steel decarbonization project in Duisburg, providing greater flexibility to continue construction and align the plant's hydrogen ramp-up with actual market conditions.

The revision follows significant changes in the hydrogen market since the original funding decision. Hydrogen production capacity, transmission infrastructure and import routes remain insufficient, while green hydrogen prices are considerably higher than initially expected, affecting the economic viability of hydrogen-based steelmaking.

Under the revised requirements, the direct reduction plant will be able to gradually increase its hydrogen share depending on availability, costs and customer demand. The facility can operate on natural gas, hydrogen or a combination of both. Using natural gas alone is expected to reduce CO2 emissions by more than 50pct compared with the conventional coal-based blast furnace route, while the longer-term objective remains full hydrogen operation.

Thyssenkrupp Steel is preparing a new tender for the long-term supply of hydrogen, which is expected to begin shortly. The company said experience from the previous tender, including information on prices, available volumes and supply chains, will be incorporated into the new process.

Construction of the direct reduction plant and its two melters is continuing. The facility is designed to produce 2.5 mln tons of directly reduced iron annually and has the potential to reduce CO2 emissions by up to 3.5 mln tons per year.

Thyssenkrupp Steel is Germany's largest flat steel producer, serving the automotive, machinery, packaging and household appliance sectors. The company operates an integrated steelmaking network centered in Duisburg and produces hot-rolled, cold-rolled and coated flat steel, electrical steel and tailored automotive blanks.