Posted on 21 Mar 2025
Thyssenkrupp's ambitious €3 billion ($3.3 billion) green steel project in Duisburg faces the risk of becoming an uneconomical stranded asset unless Germany secures a reliable and affordable source of renewable hydrogen, CEO Miguel Lopez stated in a stark warning.
"With this project we are not only pushing the boundaries of what is technologically feasible. We are also currently operating at the limits of economic viability. Or, as things stand today: beyond it," Lopez said.
The Duisburg facility, Thyssenkrupp's largest single investment, is currently under construction and aims to produce 2.5 million tonnes of green iron annually through direct-reduced iron (DRI) technology. This green iron would subsequently be converted into steel using electric arc furnaces, drastically reducing carbon emissions compared to conventional methods.
Initially, the plant will require at least 104,000 tonnes of clean hydrogen by 2028, increasing progressively to 151,000 tonnes annually by 2036-2037. Lopez pointed out that earlier assumptions regarding affordable and sufficient hydrogen supplies were overly optimistic.
"Under the current conditions, there is no guarantee that we will be able to operate the plant economically in the foreseeable future," Lopez noted during his address to the North Rhine-Westphalia parliament. "If this does not change, there is a risk that Duisburg will be home to one of the world's most modern steel production plants - without an adequate supply of the desired green hydrogen."
Lopez emphasized the need for rapid development of hydrogen pipelines across Germany and Europe to transport hydrogen competitively and stressed the importance of affordable energy prices. He also urged policymakers to create a supportive environment for the hydrogen economy.
"We need pipelines in Germany and Europe as quickly as possible to transport hydrogen competitively to where it is needed. And we need affordable energy prices – especially if the energy is to be green," Lopez stressed. "This is another reason why it is so important that a new federal government with a growth-oriented industrial policy resolutely addresses the big issues – here and in Europe."
Thyssenkrupp previously received a combined €2 billion from federal and state governments to support the project, contributing €1 billion itself. The financial backing includes initial grants and conditional payments based on progressively replacing natural gas with green hydrogen by 2037.
Lopez confirmed Thyssenkrupp’s ongoing negotiations to sell an additional 30% stake in its steel division to EP Group, owned by Daniel Kretinsky, following an initial 20% sale last year.
Source:Fuel Cells Works
