The European Commission has relaxed the terms of government funding for the technical upgrade undertaken by Thyssenkrupp Steel to convert its oxygen plants into hydrogen-powered DRI plants.
"The EU has approved the legal basis for a new adjustment of the logic of subsidizing our gearbox plant," tk Steel confirms in a statement to Kallanish.
It is believed that the concession to the European Commission is related to the postponement of the use of hydrogen in the conversion process.
According to EUToday, the initial terms of government funding assumed the availability of sufficient renewable hydrogen at an affordable price. This assumption was not fulfilled according to the expected schedule, and it is more likely that the converted plant will run on natural gas for a long transition period.
The Commission allowed the project to be implemented based on the changed assumptions.
The total investment budget of the project is 3 billion euros ($3.5 billion), of which two thirds will be financed by the state.
In accordance with the Commission's decision, the German government must now adjust the official financing decisions, tk Steel said in a statement.
Author: Christian Kel Germany
