The company received the relevant permission

Thyssenkrupp Steel has received permission to start construction of the first direct reduction plant at its Duisburg site ahead of schedule, WDR reports.

In October last year, the steel division of the German corporation submitted a corresponding application for approval to the Düsseldorf district administration. The notification of permission to start construction early is an important milestone in the approval process under the Federal Emission Control Act, the company said.

Final approval is expected at the end of 2024.

The tkH2Steel project is funded by the federal and German state governments in the amount of €2 billion, with Thyssenkrupp Steel’s own investments amounting to almost €1 billion.

The company can now start building the foundation for the facility. A factory town is to be built on the site in the next few months, and 2,000 people will be employed in the construction. The main part of the facility will be about 140 meters high and will be surrounded by about 60 buildings.

As GMK Center reported earlier, Thyssenkrupp is preparing a tender for the purchase of up to 151 ktpa of renewable and low-carbon hydrogen under 10-year contracts for expected volumes starting in 2028 for its Duisburg steel plant.

Also, in July 2030, the European Commission approved a €550 million German grant to Thyssenkrupp for the decarbonization of steel production processes and additional payments of up to €1.45 billion to accelerate the transition to renewable hydrogen. The funds will be used to build a direct reduction plant and install two smelters in Duisburg to replace the existing blast furnace. The facilities are expected to be commissioned in 2026.