Investments amounting to 2 billion euros
thyssenkrupp Steel announced it has received funding of approximately two billion euros from the German Federal Ministry of Economics and Climate Protection for its decarbonization project “tkH2Steel”. In addition, the state of North Rhine-Westphalia is participating in the overall funding and providing up to 700 million euros.
With the financial support, the company is now in a position to launch its decarbonization project, he said. The funding is focused in particular on innovative plant technology and the early abandonment of the use of natural gas. This should lead to rapid CO2 savings. According to the company, this will make “tkH2Steel” a driving force in the hydrogen economy throughout Europe.
Thyssenkrupp has already invested around one billion euros in the project.
Innovative plant combination
The essential concept of “tkH2Steel” is to integrate an innovative plant combination into Europe’s biggest steel mill. As thyssenkrupp Steel reports, the 100% hydrogen-capable direct reduction plant is the first of its kind in the world. The plant is equipped with two melters and has a production capacity of 2.5 million tons of direct reduced iron per year, from which 2.3 million tons of pig iron will be produced.
The project also ensures the production of necessary specialty materials, which are crucial for the success of the energy and mobility transition.
The concept allows all downstream process steps to be maintained from the steel mill, thus ensuring unchanged high product quality for CO2-reduced steel. Customers will continue to have access to the full production portfolio in the usual premium quality.
Indispensable in achieving the climate targets
For the company, the direct reduction plant plays an indispensable role in achieving climate targets and ensuring the economic resilience of Germany as an industrial location. The plant will achieve annual savings of up to 3.5 million metric tons of CO2 and thus make a significant contribution to CO2 reduction.
The plant is scheduled to come on stream from the end of 2026 and will operate with around 143,000 metric tons of hydrogen per year from 2029.