Thyssenkrupp will continue construction of a green steel plant

Thyssenkrupp is sticking to its plans to build a €3.5 billion green steel plant in Duisburg. This is stated in the company’s statement, Reuters reports.

However, as the company notes, for the transformation to be successful under economically viable conditions, it is necessary to adjust the framework conditions and accelerate the expansion of the relevant infrastructure, especially with regard to the hydrogen network and ensuring competitive energy prices.

At the end of last week, ArcelorMittal announced that it was abandoning plans to convert two plants in Germany to carbon-neutral production due to the country’s high electricity costs. This decision, the agency notes, is a new blow to the German industrial sector and calls into question the green hydrogen strategy initiated by the previous government.

The German Ministry of Economy expressed regret over ArcelorMittal’s statement, which refused €1.3 billion in state aid for these projects. Since these funds have not yet been received, they do not need to be returned.

The government had hoped that the subsidies would encourage ArcelorMittal to convert its plants in Bremen and Eisenhüttenstadt to use furnaces powered by hydrogen, which can be produced from renewable electricity.

Three other projects — besides Thyssenkrupp, these are initiatives by Salzgitter and Stahl-Holding-Saar — are still going ahead, according to a spokesperson for the Ministry of Economy.

It should be noted that the transition to low-carbon steel production technologies will significantly increase electricity consumption, making its price a key factor in the competitiveness of future green steel production. This is stated in a new study by GMK Center, “EU electricity market: challenges for green transition in steel industry.” This trend is particularly pronounced in technologies based on the use of hydrogen and electrolysis.