- Steel production site engages decarbonization process through hydrogen production
Steag GmbH, a german power group, has signed a Memorandum of Understanding with the industrial group Thyssenkrupp AG. The MoU detailed that Steag GmbH will supply a steel plant, owned by ThyssenKrupp AG in Duisburg, with hydrogen using a nearby electrolysis plant with a capacity of 520MW.
The progress of the MoU is, however, dependent on the success of a feasibility study. Steag GmbH will start delivering hydrogen to the steel site from 2025, the same period that a direct reduction plant is to be inaugurated at the same steel site to produce renewable hydrogen.
The released hydrogen and oxygen from the electrolytic reaction will serve as an alternative to coke in a blast furnace in producing raw iron. In addition, the made steel will be carbon emission-neutral across the entire value chain. Steag GmbH will now process to secure subsidies and investment from private sectors towards the project’s funding. Final investment decisions will be made by 2023.
Thyssenkrupp has received 40.7million USD in funding from the Federal Ministry for Economic Affairs and Climate Action. The fund is meant to develop a new green hydrogen laboratory at the Duisburg steel site. The project is expected to be completed in the space of 5 years. Based on the agreement, the hydrogen supplies will aid ThyssenKrupp’s strategy to cut its carbon emissions by 30% by 2030 and become carbon-neutral by 2045.