Germany's Thyssenkrupp reviewing green steel production plans

Thyssenkrupp, a German steel company, said that it will review its plans to produce green steel after a report Sunday suggested it might halt a major project of decarbonisation.

The conglomerate, which is in crisis, said that it was reviewing its plan for its steel business, including the "green transformation", referring to carbon-neutral steel production, one of industrial processes most polluting.

It said: "We continuously examine the best and most economic viable solutions in the given conditions, in terms of technology as well as results to make Thyssenkrupp’s steel business climate neutral on the long-term."

After the company's statement was released late Sunday, shares of Thyssenkrupp fell 3.2% by 0826 GMT.

The German newspaper Handelsblatt, citing documents, reported that Thyssenkrupp had considered scenarios from different technologies to stopping the hydrogen-based project for direct reduction.

Thyssenkrupp Steel Europe, in which Czech billionaire Daniel Kretinsky holds a 20% stake in the company, warned last month that the direct reduction site planned for Duisburg may cost more than initial estimates of $3.29 billion.

The German government and North Rhine-Westphalia state, where Thyssenkrupp has its headquarters, provide around 2 billion euros for the project. According to TKSE, possible increases in costs have no effect on the subsidies.

Thyssenkrupp has confirmed that they are reviewing the project in light of new cost estimates. They also stated that it is currently assuming that the site will be built.

TKSE and Thyssenkrupp are at odds over the amount of money that the steel division needs to survive. This dispute led to the resignation of the leadership at the end August. Reporting by Ludwig Burger, Christoph Steitz and Sherry Jacob Phillips; Editing by Alexander Smith and Sherry Jacobis)

(source: Reuters)