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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Thyssenkrupp (Essen, Germany) has green-lit the construction of Europe's largest direct reduction plant (DRI) at its Duisburg steel site in Germany.
The plant, which will be powered by green hydrogen, will have a capacity of 2.5 million metric tons--more than twice the original planned capacity--and offset the emissions of 3.5 million metric tons of CO2, the company claimed. A contract for the project will be awarded this fall with the goal of production starting in 2026. The Duisburg complex, located on the Rhine river, produces almost 11 million tonnes of steel per year, making it Europe's largest steel production site. Thyssenkrupp's strategy is to cut its carbon emissions by 30% by the end of the decade and become climate neutral by 2045. The investment in the plant and subsequent infrastructure will top 2 billion euro (US$2 billion) for what the company calls its "green transformation."
Martina Merz, chief executive officer of thyssenkrupp AG, said: "The release of this enormous investment comes in the midst of the company's transformation, in what is also for all concerned an extremely challenging environment. We are thus underlining our claim to make a significant and, above all, rapid contribution to the green transformation -- also where steel is concerned. This is a further step for our team at Steel Europe, for our partners and for the Ruhr region. In this region, we have everything that is needed for a successful green transformation. That is why the Ruhr region is playing a leading role in the energy turnaround. We are firmly convinced of this, and this is also borne out by this investment, which heralds a new era for steel production in the Ruhr region."
As part of its overall tkH2Steel transformation project, the coal-based blast furnaces will be replaced by hydrogen-powered direct reduction plants. The iron produced there will be liquefied, the company said, for the first time in downstream, specially developed melting units to produce high-quality hot iron. All subsequent production steps can take place in the existing plant structure, including the steel mills.
With the increase in plant capacity, thyssenkrupp Steel has also significantly raised its climate targets. Chief technology officer Arnd Köfler explained: "By as soon as 2030, we are planning for around 5 million metric tons of low-CO2 steel, which will deliver CO2 savings of well over 30%. The now imminent construction of one of the largest hydrogen-powered direct reduction plants planned to date will also generate innovation and employment in the Ruhr region and beyond. The intelligent combination with newly developed melting units can serve as a model for many other decarbonization projects in the steel industry worldwide. In order to continue our transformation without delay, we are planning to award the contract in the fall and we are already making appropriate preparations."
Industrial Info is tracking 31 projects at the Duisburg complex with an investment value of almost US$700 million. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The plant, which will be powered by green hydrogen, will have a capacity of 2.5 million metric tons--more than twice the original planned capacity--and offset the emissions of 3.5 million metric tons of CO2, the company claimed. A contract for the project will be awarded this fall with the goal of production starting in 2026. The Duisburg complex, located on the Rhine river, produces almost 11 million tonnes of steel per year, making it Europe's largest steel production site. Thyssenkrupp's strategy is to cut its carbon emissions by 30% by the end of the decade and become climate neutral by 2045. The investment in the plant and subsequent infrastructure will top 2 billion euro (US$2 billion) for what the company calls its "green transformation."
Martina Merz, chief executive officer of thyssenkrupp AG, said: "The release of this enormous investment comes in the midst of the company's transformation, in what is also for all concerned an extremely challenging environment. We are thus underlining our claim to make a significant and, above all, rapid contribution to the green transformation -- also where steel is concerned. This is a further step for our team at Steel Europe, for our partners and for the Ruhr region. In this region, we have everything that is needed for a successful green transformation. That is why the Ruhr region is playing a leading role in the energy turnaround. We are firmly convinced of this, and this is also borne out by this investment, which heralds a new era for steel production in the Ruhr region."
As part of its overall tkH2Steel transformation project, the coal-based blast furnaces will be replaced by hydrogen-powered direct reduction plants. The iron produced there will be liquefied, the company said, for the first time in downstream, specially developed melting units to produce high-quality hot iron. All subsequent production steps can take place in the existing plant structure, including the steel mills.
With the increase in plant capacity, thyssenkrupp Steel has also significantly raised its climate targets. Chief technology officer Arnd Köfler explained: "By as soon as 2030, we are planning for around 5 million metric tons of low-CO2 steel, which will deliver CO2 savings of well over 30%. The now imminent construction of one of the largest hydrogen-powered direct reduction plants planned to date will also generate innovation and employment in the Ruhr region and beyond. The intelligent combination with newly developed melting units can serve as a model for many other decarbonization projects in the steel industry worldwide. In order to continue our transformation without delay, we are planning to award the contract in the fall and we are already making appropriate preparations."
Industrial Info is tracking 31 projects at the Duisburg complex with an investment value of almost US$700 million. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
