FRANKFURT (Reuters) – Thyssenkrupp said a planned green steel site worth around 3 billion euros ($3.1 billion) could go ahead even if government ambitions to build up a world-leading hydrogen industry fail.
German opposition leader Friedrich Merz, tipped to become chancellor in next month’s election, said late on Monday a fast shift to hydrogen was unrealistic.
The current SPD-led government, which broke apart last year over issues including disagreements on funding, has sought to speed up the decarbonisation of its industry, with hydrogen a pillar of that strategy.
However, doubts about the economics and regulatory uncertainty have led to project delays and questioning of whether industry, especially steelmakers, can implement their plans.
While the government is in charge of ensuring a timely ramp-up of hydrogen infrastructure and supply to secure Europe’s steel sector, the group’s planned green steel site in Duisburg was not dependent on it, Thyssenkrupp said.
“The plant can also be operated with natural gas. In natural gas operation, around 50% of the CO2 emissions generated in conventional blast furnace operation can already be avoided,” the group said.
It said the plant would be virtually climate-neutral if operated entirely with green hydrogen, meaning hydrogen produced using renewable energy.
“In principle, we are open to all technologies for the further green transformation of the steel business and reserve all conceivable options to further decarbonise crude steel production in particular.”
Thyssenkrupp, Germany’s largest steelmaker, said the next step in its steel transformation could be the construction of a modern electric arc furnace to replace another blast furnace in Duisburg.
($1 = 0.9754 euros)
(Reporting by Tom Kaeckenhoff and Christoph Steitz; editing by Barbara Lewis)
