The funding of the decarbonization project "tkH2Steel" by thyssenkrupp Steel was approved by the EU Commission for a total amount of around two billion euros by the federal and state governments through two interlocking funding instruments "Initial Grant" and "Conditional Payment". In particular, innovative plant technology and the early abandonment of natural gas are being promoted. The approval of the EU Commission under state aid law will enable the German government to release the subsidies applied for.
The novel concept is characterized above all by its innovative strength and the extremely ambitious hydrogen ramp-up. On the one hand this will save a lot of CO2 in a short time, on the other "tkH2Steel" will become a driver of the European hydrogen economy and thus an anchor point for investment in the rapid development of a cross-border hydrogen infrastructure. The investment by thyssenkrupp is just under 1 billion euros.
"Our project is an important contribution to achieving the climate targets in Germany and Europe and secures sustainable industrial jobs, also in related sectors. We can thus also demonstrate internationally that progress, prosperity and climate protection are not contradictory. We thank the German government and the state government of North Rhine-Westphalia for their continued and determined support for the green transformation of our steel production and their confidence in our concept. We are now counting on formal approval by the federal government in the near future," says Bernhard Osburg, Executive Board Chairman of thyssenkrupp Steel Europe AG.
Innovative plant combination
The "tkH2Steel" concept focuses on integrating a technologically new plant combination into Europe's biggest steel mill. The 100% hydrogen-capable DR plant with two melters and a production capacity of 2.5 million metric tons of directly reduced iron per year (which will become 2.3 million metric tons of pig iron) is the first plant combination of its kind in the world in this technological concept. It is a technological pioneer for the further decarbonization of the steel value chain and guarantees, among other things, indispensable specialty materials for the success of the energy and mobility transition.
The pioneering concept is a significant step for industrial climate protection in Europe: The annual savings will eventually be up to 3.5 million tons of CO2. Commissioning is scheduled to start at the end of 2026. The plant is already on schedule to operate in 2029 with around 143,000 metric tons of hydrogen per year - equivalent to the filling volume of the Oberhausen gasometer, every two hours, 365 days a year.
Plant construction on schedule
After granting the early start of the project, thyssenkrupp Steel commissioned the SMS group from Düsseldorf with the engineering, supply and construction of the direct reduction plant, as well as the two melters and the associated auxiliary equipment at the Duisburg location at the beginning of the year. The detailed planning and preparatory measures for construction are already at an advanced stage.
