Germany’s Vice-Chancellor Robert Habeck Commits €2 Billion to thyssenkrupp’s Green Steel Project tkH2Steel

Germany’s Vice-Chancellor Robert Habeck Commits €2 Billion to thyssenkrupp’s Green Steel Project tkH2Steel

(IN BRIEF) Robert Habeck, Germany’s Vice-Chancellor and Minister for Economic Affairs and Climate Action, pledges around two billion euros in funding to thyssenkrupp Steel’s “tkH2Steel” decarbonization project. The joint effort with the state government of North Rhine-Westphalia aims to revolutionize primary steel production using 100% hydrogen-capable direct reduction technology. The project will annually save up to 3.5 million metric tons of CO2 and position thyssenkrupp Steel as a pioneer in the European hydrogen economy. Commissioning is expected to begin by the end of 2026, driving Germany’s green steel transformation and securing industrial jobs in the region.

(PRESS RELEASE) ESSEN, 26-Jul-2023 — /EuropaWire/ — Robert Habeck, Germany’s Vice-Chancellor and Minister for Economic Affairs and Climate Action, visited thyssenkrupp Steel today to announce the government’s substantial funding commitment of around two billion euros to the “tkH2Steel” decarbonization project. The funding comes as a joint effort between the Federal Ministry for Economic Affairs and Climate Action and the state government of North Rhine-Westphalia, with the latter contributing up to 700 million euros towards this landmark project.

The “tkH2Steel” project aims to revolutionize primary steel production and serve as a blueprint for the decarbonization of the industry, positioning thyssenkrupp Steel as a pioneer in the European hydrogen economy.

Leading the Decarbonization of the Steel Value Chain

With the EU Commission granting state aid approval for the “tkH2Steel” project last week, the path is now clear for one of the largest decarbonization initiatives globally. This innovative project will prioritize the adoption of 100% hydrogen-capable direct reduction technology, resulting in the annual production of 2.5 million metric tons of directly reduced iron and 2.3 million metric tons of hot metal. This integration of cutting-edge plant technology ensures that subsequent process steps in the steel production chain remain intact, maintaining high product quality for CO2-reduced steel.

A Driving Force for the European Hydrogen Economy

The “tkH2Steel” project will play a vital role in the development of a cross-border hydrogen infrastructure, positioning it as a significant driver for the European hydrogen economy. By saving up to 3.5 million metric tons of CO2 annually—equivalent to nearly five percent of the Ruhr region’s emissions—thyssenkrupp Steel is taking decisive steps toward meeting climate targets while strengthening Germany’s industrial resilience.

The Journey to a Green Future

The ambitious hydrogen ramp-up plan, set to commence in 2029, will result in the production of approximately 143,000 metric tons of hydrogen per year. The corresponding electricity demand will be met by renewable sources, further enhancing the project’s eco-friendly credentials. The commissioning of the plant complex is expected to begin toward the end of 2026.

Praise for a Collaborative Effort

Robert Habeck, Germany’s Vice-Chancellor and Minister for Economic Affairs and Climate Action, expressed his enthusiasm for the “tkH2Steel” project during his visit to thyssenkrupp Steel, stating, “Today is a good day for the climate, the green industry in Germany, for the Duisburg location, and for the employees. I am delighted at being able to give thyssenkrupp definitive formal confirmation of funding totaling around two billion euros today.”

Mona Neubaur, North Rhine-Westphalia’s Deputy Prime Minister and Minister of Economic Affairs, praised the joint efforts of the federal and state governments, saying, “North Rhine-Westphalia is Germany’s number one steel-producing location, and the heart of the North Rhine-Westphalian steel industry beats in Duisburg. With the EU Commission’s state aid approval, steel production here at the Duisburg site will very soon become decisively more climate-friendly. This is a milestone for North Rhine-Westphalia on its way to becoming Europe’s very first climate-neutral industrial region.”

Miguel Ángel López Borrego, CEO of thyssenkrupp AG, remarked, “We would like to thank the federal government and the state government of North Rhine-Westphalia for their determined support for the green transformation of our steel production. thyssenkrupp, North Rhine-Westphalia, and Germany are thus becoming the pioneers for climate-neutral steel production.”

Bernhard Osburg, Chairman of the Executive Board of thyssenkrupp Steel Europe AG, highlighted the significance of the project for climate targets and European technological competence, stating, “We are proud that, with the support of the federal government and the state government of North Rhine-Westphalia, we are making a key contribution to achieving the German and European climate targets and realizing the vision of an industrial location that combines progress, prosperity, and climate protection.”

Tekin Nasikkol, Chairman of the General Works Council of thyssenkrupp Steel Europe AG, expressed gratitude for the funding, acknowledging its positive impact on the workforce and Duisburg as a steel production location.

The “tkH2Steel” decarbonization project marks a critical milestone in Germany’s efforts to combat climate change, secure industrial jobs, and promote the development of a sustainable hydrogen economy in Europe.

Note to Editors:
For more information about the “tkH2Steel” project and thyssenkrupp Steel’s decarbonization efforts, please visit the company’s official website.

Media contacts:

Steel Europe
Mark Stagge
Head of Public and Media Relations
Telephone:+49 (0) 203 52-25159
mark.stagge@thyssenkrupp.com

SOURCE: thyssenkrupp AG