Thyssenkrupp Steel and RWE sign a contract for the supply of green electricity

German companies Thyssenkrupp Steel and RWE have signed a long-term power purchase agreement (PPA) to supply green electricity to the first direct reduction plant in Duisburg, which will be equipped with electrically driven smelters. This is stated in the message of Thyssenkrupp.

The 10-year contract provides for the supply of electricity in the amount of 112 GWh per year. Electricity will be generated at RWE’s Nordsee Kaskasi offshore wind farm.

According to Thyssenkrupp, this means that offshore wind power will make a significant contribution to the energy supply for the tkH2Steel transformation project in the future and will also help to achieve climate goals. Additional contracts with its producers will be required to fully supply the system with green electricity.

In combination with two electrically driven melting furnaces, the direct reduction unit will be integrated into the Duisburg steelworks as a technologically new combination.

The partnership with RWE is an important part of the energy strategy within the tkH2Steel transformation project for sustainable steel production.

«Renewable energy is a core element in our transformation strategy alongside the use of regeneratively produced hydrogen – a separate public call for tenders is currently underway for this. The cooperation with RWE is the first step towards meeting the renewable electricity requirements in the tkH2Steel project. By concluding this PPA, we are taking one step further on the path to carbon-neutral production,» explains Dr Arnd Köfler, Chief Technology Officer at thyssenkrupp Steel.

As GMK Center reported earlier, Thyssenkrupp Steel received permission for the early start of construction of the first direct recovery plant at its site in Duisburg. The tkH2Steel project is financed by the federal government and the governments of the German states in the amount of €2 billion, the company’s own investments amount to almost €1 billion.