The European Union Commission has given the green light for German federal and state government funding totaling around two billion euros for thyssenkrupp Steel's ambitious "tkH2Steel" decarbonization project. The project aims to revolutionize the steel industry through an innovative plant configuration and a substantial hydrogen ramp-up. The EU Commission's approval will be facilitated through two interconnected funding instruments, "Initial Grant" and "Conditional Payment," focusing on promoting cutting-edge plant technology and the rapid phase-out of natural gas usage.

The "tkH2Steel" project stands as a significant contribution to achieving both Germany's and Europe's climate targets. By introducing this pioneering concept, the project is expected to make substantial reductions in CO2 emissions, ultimately saving up to 3.5 million metric tons of CO2 annually. The heart of the initiative lies in integrating a technologically advanced plant combination into Europe's largest iron and steel facility. The plant, featuring a 100% hydrogen-capable DR plant with two melters, will be the world's first of its kind with such an innovative setup. Once operational, the facility will produce 2.5 million metric tons of directly reduced iron per year, equivalent to 2.3 million metric tons of hot metal. The plant's operations are projected to commence by 2029, with an impressive production capacity of approximately 143,000 metric tons of hydrogen per year.

Bernhard Osburg, Chairman of the Executive Board of thyssenkrupp Steel Europe AG, expressed gratitude for the unwavering support of the German and North Rhine-Westphalia state governments, stating that the project secures sustainable industrial jobs and demonstrates that progress, prosperity, and climate change mitigation can coexist harmoniously. With the EU Commission's approval, thyssenkrupp's investment of nearly one billion euros can now move forward to facilitate the transformation of steel production towards a more sustainable and environmentally friendly approach.

As preparatory work for the plant's construction is already underway, thyssenkrupp Steel has engaged the SMS group to handle engineering, supply, and construction of the direct reduction plant and two melters at the Duisburg location. The project's startup is targeted for the end of 2026, marking a pivotal milestone in the fight against climate change and the pursuit of a greener future for the European steel industry.

Source: thyssenkrupp