The European Commission has revised the funding requirements for the conversion of thyssenkrupp Steel to produce DRI-based steel using hydrogen.
The revised funding requirements allow for a gradual and more flexible increase in the share of hydrogen. This means the company can run its new plant on natural gas for a longer transition period than originally intended, Kallanish understands.
The requirements had to be revised because the economic conditions have changed significantly since the original funding decision was made, tk Steel explains. In particular, the development of the hydrogen market has fallen short of the expectations that prevailed at that time. Generation capacity, transmission lines, and import pathways are not yet available to the extent required, the company notes. At the same time, green hydrogen is significantly more expensive than originally anticipated and is not yet available on competitive terms, tk Steel underlines.
The direct reduction plant is technically designed to run on natural gas, hydrogen, or a mixture of the two. Simply using natural gas already enables a significant CO2 reduction of over 50% compared to today’s coal-based blast furnace route, tk Steel notes.
The revision will be followed by a new hydrogen tender, which is scheduled to begin shortly, the steelmaker announces. The first process had already provided important insights into prices, available quantities, and supply chains, it notes. This experience will be incorporated into the new call for proposals.
