Thyssenkrupp's $3 billion green steel plan is not entirely dependent on hydrogen

Thyssenkrupp has said that a green steel plant worth 3 billion euros could still be built even if the government's ambitions of building a world-leading hydrogen industry fail.

Friedrich Merz of the German opposition, who is expected to win next month's elections and become chancellor, said on Monday that a rapid shift to hydrogen would be unrealistic.

The current SPD government, which split last year due to disagreements over funding and other issues, has tried to accelerate the decarbonisation in its industry. Hydrogen is a key component of this strategy.

The uncertainty in the economy and regulation has led to delays in projects and questions about whether the industry, particularly steelmakers, will be able to implement their plans.

Thyssenkrupp stated that while the government was responsible for ensuring the timely expansion of hydrogen infrastructure in Europe and its supply, the planned green steel plant in Duisburg did not depend on this.

The plant can be operated using natural gas. The group stated that in natural gas operation, 50% of CO2 emissions from conventional blast furnace operations can be avoided.

The plant will be almost climate neutral if it is operated exclusively with green hydrogen. This means hydrogen that has been produced from renewable energy.

"In principle, the steel industry is open to any technology that can help it become more environmentally friendly. We reserve all options possible to decarbonise the crude steel production."

Thyssenkrupp is Germany's biggest steelmaker. It said that the next step to its steel transformation would be the construction of an electric arc-furnace in Duisburg. Reporting by Tom Kaeckenhoff, Christoph Steitz and Barbara Lewis.

(source: Reuters)