Thyssenkrupp proceeds to invest in H2-powered DR plant for low-carbon steel
Image Credits: thyssenkrupp Steel Europe AG.
Industrial conglomerate Thyssenkrupp AG (ETR:TKA) has, as part of its green transformation, taken the decision to build Germany’s largest direct reduction (DR) plant for low-carbon steel that will rely on hydrogen rather than coal.
The company said in a statement today that its executive board, supported by the supervisory board, has released the corresponding capital resources for this EUR-2-billion-plus (USD 2bn) project at the Duisburg site in the Ruhr region.
The major project is still subject to public funding, the announcement says. According to Arnd Koefler, CTO of thyssenkrupp Steel Europe AG, the company is already taking the appropriate preparations to award a contract this autumn. Production is scheduled to begin in 2026.
The plant will have the capacity to produce 2.5 million tonnes of direct reduced iron and will avoid the emission of 3.5 million tonnes of carbon dioxide (CO2).
Koefler pointed out that the company is planning for around five million tonnes of low-CO2 steel by as soon as 2030. This will deliver CO2 savings of well over 30%.
"With today's decisions, we are continuing to set the pace on our path to climate-friendly steel production. The first direct reduction plant with downstream melters will supply our customers with over two million metric tons of low-CO2 premium steel per year in the foreseeable future, significantly more than previously planned,” said Bernhard Osburg, chairman of the executive board of thyssenkrupp Steel Europe.
The German group is the majority owner of electrolyser maker Thyssenkrupp Nucera, which is being run as a joint venture with Italy's Industrie De Nora SpA.