Green steel in Germany
EU approves billions in aid for Thyssenkrupp
7/20/2023 1:42 p.m
Thyssenkrupp is to receive billions in funding from the federal government and North Rhine-Westphalia in order to produce climate-friendly steel in Duisburg in the future. The EU Commission has now given its approval for this. This has advantages for the entire industry.
The EU Commission has approved German billions in aid for the construction of a large-scale plant for the production of more climate-friendly steel by Thyssenkrupp. Specifically, it is about support of up to two billion euros, said the EU Commission. According to the information, the aid is divided into two parts. On the one hand, subsidies of up to 550 million euros are to be used to support the construction and assembly of a steel production plant. Initially, natural gas will still be used for operation, but the gas is to be completely replaced by renewable hydrogen by 2037, making it more climate-friendly.
The remaining up to 1.45 billion euros of the aid is to be used to finance a mechanism that is intended to cover additional costs in the first ten years of operation of the new plant. Specifically, it is about the costs that would be incurred when procuring and using renewable hydrogen instead of low-CO2 hydrogen. According to the Commission, the release of more than 58 million tons of CO2 can be avoided during the entire duration of the project. Thyssenkrupp has undertaken to actively pass on knowledge gained as part of the project to industry and science.
The plant is scheduled to go into operation in 2026
Germany’s largest steel manufacturer Thyssenkrupp Steel wants to build a so-called direct reduction plant (DR plant) in Duisburg for the production of “green” steel. It is to be operated with climate-neutral hydrogen and thus significantly reduce the emission of greenhouse gases during steel production. According to earlier information, the state of North Rhine-Westphalia and the federal government want to fund the project with a total of around two billion euros.
The entire plant, which also includes two so-called melters, is scheduled to go into operation at the end of 2026. According to earlier information, it would then be the largest such facility in Germany. However, construction has not yet started. Around 13,000 people work for Thyssenkrupp in Duisburg. In Germany, other steel producers want to build such plants. In April, the Salzgitter company received a grant of one billion euros.