How Thyssenkrupp wants to produce “green” steel

Status: 05/03/2023 12:12 p.m

Steel production in Duisburg alone produces 2.5 percent of the carbon dioxide emitted in Germany. In a few years, Thyssenkrupp wants to produce climate-friendly steel. The state of North Rhine-Westphalia pays high subsidies for this.

When the two highest-ranking representatives of the federal government and the Prime Minister of the most populous federal state visit an industrial company together, there should actually be something very special, new and innovative to see. But that doesn’t actually exist in the ThyssenKrupp steelworks in Duisburg – not yet.

Nevertheless, Federal President Frank-Walter Steinmeier, Bundestag President Bärbel Bas (she is a member of the Bundestag for Duisburg) and NRW Prime Minister Hendrik Wüst were able to take a look at the future of steel production yesterday at the table-sized model. From the end of 2026, “green” steel is to be produced in Duisburg – green because its production does not produce any climate-damaging carbon dioxide, because Thyssenkrupp uses hydrogen as an energy source, which is to be produced with renewable energies.

Thyssenkrupp boss Martina Merz has announced her retirement.
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Sale of the steel division falters

The new direct reduction plant is expected to cost around two billion euros. Saving carbon dioxide in steel production is a huge task, says Steinmeier. He has great respect for those who take on this task.

He looks at the workers and the management, who have completely different concerns at the moment. Thyssenkrupp actually wants to make its steel division independent, preferably selling it. The steel business is subject to strong cyclical fluctuations. And most of these cycles have not played into Thyssenkrupp’s hands in recent years. Before Martina Merz, two other CEOs had failed because they could not find a solution.

Now it has hit her: she gave notice of her own accord two weeks ago to forestall a layoff. Her successor, former Siemens manager Miguel Ángel López Borrego, will take office on June 1. But when walking through the factory, Merz is still allowed to accompany the Federal President.

largest single investment a federal state

Steinmeier explains the technology using the model of the direct reduction plant. The iron ore is to be freed from oxygen by the use of hydrogen, i.e. reduced. This “hydrogen blast furnace” does not use coal. The plant will be built by the SMS Group from Hilchenbach in Siegerland, a specialist in metallurgical and rolling mill technology.

The Prime Minister is particularly pleased that the customer and client both come from North Rhine-Westphalia. Wüst then also emphasizes that his black-green government is providing subsidies of up to 700 million euros, which is the largest single investment that a federal state has ever made.

The head of the works council, Tekin Nasikkol, leaves no doubt about the thanks of the Thyssenkrupp workforce. He has rarely experienced such a quick award of orders, you can literally feel the spirit of optimism among the workers: “Our employees are taking this path full of vigor. We are convinced that climate neutrality can go hand in hand without de-industrialization. That’s what we stand for here in Duisburg.”

Morocco is said to play an important role as Germany’s supplier of “green” hydrogen.
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Scarce “green” hydrogen

The main question that remains is where all the “green” hydrogen that is needed should come from. Sopna Sury, who heads the board department for hydrogen at RWE Generation, gives hope: A lot will be able to come from Scandinavia via pipelines, in the future also from other parts of the world – and at some point also from the regenerative generation options that are now to be expanded as quickly as possible. But the transition will still depend on natural gas or liquefied natural gas (LNG). The new Thyssenkrupp plant will therefore initially have to be operated with these fossil fuels.

The new “green” steel will be significantly more expensive than coal-based steel, at least in the initial phase. Therefore, it must be ensured that he is competitive on the world markets, stressed Steinmeier. No one can predict whether it will then be sold under the Thyssenkrupp label or another: Even the visit of the Federal President could not eliminate this great uncertainty as to who will soon be in charge of Germany’s largest steel mill.

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