Thyssenkrupp CEO: We can't guarantee that the $3.3 billion green steel plant will be cost-effective.

The CEO of Thyssenkrupp said that a planned 3 billion-euro ($3.3billion) Thyssenkrupp site in Duisburg, which is to produce carbon-neutral metals, could be left stranded without Germany ensuring there's enough green hydrogen to provide it. This project is not just about pushing the limits of technological feasibility. We are also operating at the limit of economic viability. "Or, as it stands today: beyond that," Miguel Lopez said.

The comments cast doubts on the single largest investment of the company and reflect a more sobering evaluation around hydrogen supply in Europe’s top economy. Hydrogen was once considered a viable alternative energy source.

Lopez stated that when the site's conception was made, it was assumed that there would be enough affordable green hydrogen available by the time the site was completed. He said this assumption was too ambitious.

According to the transcript of Lopez's speech in the North Rhine-Westphalia regional parliament, where the company has its headquarters, "Under current conditions, it is not guaranteed that we will have the ability to operate the facility economically in the near future."

"If we don't change this, Duisburg could be the home of one of the most modern steel plants in the world - but without the green hydrogen that is desired."

Lopez confirmed that the group aims to sell an additional 30% stake in Thyssenkrupp Steel Europe to EP Group. EP Group is owned by Daniel Kretinsky, who bought a 20% stake last year.

(source: Reuters)