The European Commission has revised the funding terms for thyssenkrupp Steel’s project to produce steel using hydrogen-based direct reduction of iron.
The new requirements allow for a gradual and more flexible increase in the share of hydrogen. As a result, the company will be able to use natural gas at its new plant for longer than originally planned, Kallanish reports.
tk Steel said the terms were revised because of significant changes in the economic situation since the original funding decision was made. In particular, the hydrogen market has developed more slowly than expected. According to the company, the necessary hydrogen production capacity, transportation networks and import channels have yet to be established. Green hydrogen is also significantly more expensive than anticipated and is not yet available at competitive prices.
The direct reduction plant is technically designed to run on natural gas, hydrogen or a mix of the two. Even when using only natural gas, CO2 emissions will be more than 50% lower than those from current coal-based blast furnace steel production, tk Steel says.
Following the revision of the terms, the steelmaker will launch a new tender for hydrogen supplies, which is expected to begin shortly. The first tender helped provide important data on prices, available volumes and supply chains. This experience will be taken into account when preparing the new request for proposals.
Author: Christian Köl, Germany
