Posted on 19 Feb 2024
Thyssenkrupp Steel has officially launched a tender for the supply of hydrogen to its first direct reduction (DRI) plant, Kallanish learns from the German company.
In conjunction with two new electric smelters, this will be the centrepiece of the first transformation step in thyssenkrupp’s decarbonisation process as part of the tkH2Steel project, the company states.
The steelmaker said last month the tender will be carried out in three phases, with the final stage slated for Q3 2024. The company plans to sign 10-year supply contracts targeting first deliveries in 2028, at its Duisburg site in western Germany. tk Steel is seeking 104,000 tonnes of low-carbon hydrogen in the first year of supply. Procurement for 2029-2035 is planned at 143,000 t/y, before rising to 151,000 t/y in 2036-2037.
The hydrogen requirement is being put out to tender in a transparent and broad-based procedure, with the aim of operating the direct reduction plant fully on hydrogen by as early as 2029. The tender is being organised in close coordination with the German Federal Ministry for Economic Affairs and Climate Protection (BMWK). Together with the state of North Rhine-Westphalia, the ministry is funding the plant project and the associated hydrogen ramp-up to the tune of around €2 billion ($2.2 billion).
The plan will enable tk to cease using natural gas at an early stage while also firing the starting pistol for the hydrogen ramp-up in Germany, the steelmaker claims. The 100% hydrogen-capable direct reduction plant has an annual production capacity of 2.5 million tonnes of DRI.
The first use of hydrogen in the plant combination is planned for 2028. By 2029, the steelmaker will use around 143,000 t of hydrogen – equivalent to 5.6 terawatt hours. As the largest German hydrogen consumer, tk Steel claims it will function as the initiator of and driving force behind a hydrogen economy.
The call for tenders for the hydrogen volumes was already published in various German federal government and EU portals. The tendering process is aimed at all potential hydrogen suppliers with production projects for renewable green or CO2-reduced blue hydrogen, with the ability to deliver to Duisburg.
Source:Kallanish
