German steelmaker thyssenkrupp Steel Europe’s upcoming hydrogen supply tender will be carried out in three phases, starting next month, the company told Kallanish on Monday.
In Phase 1, the company will launch the request for information (RFI) from potential suppliers. In Phase 2, starting in the second quarter, it will request proposals. The third and final stage, slated for Q3, will start the request for quotation.
The aim is for the company to sign ten-year supply contracts targeting first deliveries in 2028, at its Duisburg site in western Germany. As reported last week, tk Steel is seeking 104,000 tonnes of low-carbon hydrogen in the first year of supply. Procurement for 2029-2035 is planned at 143,00 t/year, before rising to 151,000 t/y in 2036-2037.
The 25-mile DoHa pipeline project between Dorsten and Duisburg-Hamborn is still subject to a final investment decision. However, a spokesperson says the company “definitely expects it to be implemented”, to enable the first green and blue hydrogen molecules to be delivered in 2028.
Although the company recognises its role as a “catalyst” for a hydrogen ecosystem, it also notes that “the development of an H2 infrastructure is not one of thyssenkrupp Steel’s core competences. The plan is to use the public H2 grid for the hydrogen supply”, the spokesperson explains.
Earlier this year, reports suggested thyssenkrupp Group was exploring opportunities for pipeline partnerships in three regions – the Iberian Peninsula, the Arabian Peninsula and the US South. Chief executive Miguel López was quoted as saying new hydrogen pipelines connecting countries such as Spain, Portugal and Morocco would be crucial to meeting Germany’s hydrogen demand. Rather than building the infrastructure itself, the steelmaker is looking at securing transport capacity and hydrogen supply to deliver its green steel products.
The first green steel plant in Duisburg is expected to run on 100% green hydrogen from 2030 onwards after a gradual conversion phase away from natural gas. The European Commission estimates the plant to be fully operated using renewable hydrogen in 2037.
Last July, the Commission cleared two German state aid measures to help the steelmaker decarbonise its steel production and accelerate renewable hydrogen uptake. The company will receive a €550 million ($601.9m) direct grant and a conditional payment mechanism of up to €1.45 billion to accelerate the phase-in of renewable hydrogen in its steelmaking.