Thyssenkrupp’s €3 billion green steel plant in Duisburg is at risk of becoming economically unviable due to the high cost and limited availability of renewable hydrogen, CEO Miguel Lopez has warned. The company is urging swift action on hydrogen infrastructure and competitive pricing to secure the project’s future.
A Game-Changing Initiative Under Pressure
The green steel plant, designed to produce 2.5 million tons of green iron annually, relies on direct-reduced iron (DRI) technology and electric arc furnaces to significantly cut carbon emissions. Initially, Thyssenkrupp expected a sufficient supply of low-cost hydrogen, but these projections have proven overly optimistic.
Rising Hydrogen Demand by 2036
By 2028, the plant will require at least 1,04,000 tons of clean hydrogen, with demand rising to 1,51,000 tons annually by 2036-2037. Lopez emphasized the urgent need for a well-developed hydrogen pipeline network across Germany and Europe, along with policies that ensure competitive energy prices.
Government Support and Financial Uncertainty
Despite securing €2 billion in government funding and investing €1 billion of its own resources, Thyssenkrupp now faces operational uncertainty. To strengthen its position, the company is negotiating the sale of an additional 30% stake in its steel division to EP Group.
As reported by manufacturingtodayindia.com, Thyssenkrupp remains committed to its green steel vision, but without affordable hydrogen, the project’s long-term success hangs in the balance.
