The company has received the relevant permission
Thyssenkrupp Steel has received permission to start construction of the first direct reduction plant at its Duisburg site ahead of schedule, WDR reports .
In October last year, the steel division of the German company submitted a corresponding request for approval to the Düsseldorf district administration. Notification of permission to begin construction early is an important milestone in the approval process under the Federal Emissions Control Act, the company said.
Final approval is expected by the end of 2024.
The tkH2Steel project is funded by the German federal and state governments to the tune of €2 billion, with Thyssenkrupp Steel's own investments totaling almost €1 billion.
The company can now begin building the foundation of the facility. An industrial city will be built on the site in the coming months and 2,000 people will be employed in the construction. The main part of the facility will be about 140 meters tall and will be surrounded by about 60 buildings.
As Compraço previously reported, Thyssenkrupp is preparing a tender to purchase up to 151 ktpa of renewable, low-carbon hydrogen under 10-year contracts for volumes expected from 2028 for its Duisburg steel plant.
Furthermore, in July 2030, the European Commission approved a German grant of €550 million to Thyssenkrupp for the decarbonization of steel production processes and additional payments of up to €1.45 billion to accelerate the transition to hydrogen renewable. The funds will be used to build a direct reduction unit and install two smelters in Duisburg to replace the existing blast furnace. The facilities are expected to be commissioned in 2026.
