German steel producer thyssenkrupp Steel Europe has postponed the start-up of its direct reduced iron (DRI) plant in Duisburg from 2027 to 2029. The company confirmed that the two-year delay was primarily caused by engineering-related challenges.
Germany-based thyssenkrupp Steel Europe has revised the timeline for its tkH2Steel project in Duisburg, which forms part of the company’s transition to lower-carbon steel production. According to updated European Commission funding documents, the DRI plant, originally scheduled to begin operations in 2027, is now expected to be commissioned in 2029.
A company spokesperson confirmed that the delay was largely attributable to the project’s engineering phase. The European Commission also linked the postponement to construction-related challenges associated with the project’s innovative nature.
The project represents a total investment of approximately EUR 3 billion and is expected to receive up to EUR 2 billion in public funding. Two-thirds of the funding will be provided by the German federal government, with the remaining third coming from the state of North Rhine-Westphalia.
Construction began in February 2024, and the facility is designed to have an annual production capacity of 2.5 million tonnes of direct reduced iron.
According to thyssenkrupp Steel, construction work on the direct reduction tower is ongoing, while foundations for the two melters are being prepared. Some of the electrical control buildings have already been completed.
The company stated that the delay is not expected to result in additional project costs and that potential measures to accelerate construction remain under consideration. An exact commissioning date has not yet been announced.
thyssenkrupp Steel stated that the production ramp-up following commissioning will depend on developments in the hydrogen market and hydrogen availability.
Under the revised funding conditions announced on October 30, 2026, the company will be able to increase hydrogen use at the DRI facility gradually and with greater flexibility.
The plant is designed to operate using natural gas, hydrogen, or a combination of both. According to the company, even when operating entirely on natural gas, the facility could reduce CO₂ emissions by more than 50% compared with conventional coal-based blast furnace production.
The project is expected to have the potential to reduce annual CO₂ emissions by up to 3.5 million tonnes. Construction remains ongoing, with 2029 now set as the revised target year for commissioning.
