September 8 (Renewables Now) -
Industrial conglomerate Thyssenkrupp AG (ETR:TKA) has, as part of its green
transformation, taken the decision to build Germany’s largest direct reduction
(DR) plant for low-carbon steel that will rely on hydrogen rather than coal.
The company said in a statement today that its executive board, supported
by the supervisory board, has released the corresponding capital resources for
this EUR-2-billion-plus (USD 2bn) project at the Duisburg site in the Ruhr
region.
The major project is still subject to public funding, the
announcement says. According to Arnd Koefler, CTO of thyssenkrupp Steel Europe
AG, the company is already taking the appropriate preparations to award a
contract this autumn. Production is scheduled to begin in 2026.
The plant will have the capacity to produce 2.5 million tonnes of
direct reduced iron and will avoid the emission of 3.5 million tonnes of carbon
dioxide (CO2).
Koefler pointed out that the company is planning for around five
million tonnes of low-CO2 steel by as soon as 2030. This will deliver CO2
savings of well over 30%.
"With today's decisions, we are continuing to set the pace on
our path to climate-friendly steel production. The first direct reduction plant
with downstream melters will supply our customers with over two million metric
tons of low-CO2 premium steel per year in the foreseeable future, significantly
more than previously planned,” said Bernhard Osburg, chairman of the executive
board of thyssenkrupp Steel Europe.
The German group is the majority owner of electrolyser maker
Thyssenkrupp Nucera, which is being run as a joint venture with Italy's
Industrie De Nora SpA.