Posted on 27 Nov 2024
German steelmaker thyssenkrupp Steel Europe says its hydrogen procurement plans have not changed despite its new future industrial strategy, which includes production reduction.
Citing the further consolidation of fundamental and structural changes in the European steel market and in key customer and target markets, the company announced “urgent measures” to improve operating efficiency and cost competitiveness. Amid production and personal reductions, tk says it remains committed to the green transformation of the steel industry.
It plans to complete the direct reduction (DR) plant that is building in Duisburg, for which it started a tender for hydrogen supply. Earlier this year, the steelmaker said it would need 104,000 tonnes of green hydrogen in 2028, with volumes rising to 143,000 t/y during 2029-2035 and 151,000 t/y in 2036-2037, to enable green steel production. The DR plant was planned to start using hydrogen in 2028 on a partial basis, running on 100% hydrogen in the following year.
The tkH2Steel project, backed by €2 billion ($2.16 billion) in public funds, is planned as a blueprint for primary steel production decarbonisation with the use of hydrogen. It should enable the replacement of coal-fired blast furnaces with a hydrogen-run DR plant with two integrated melters in Duisburg, western Germany.
As a major hydrogen consumer, thyssenkrupp has claimed it will be a catalyst for the European hydrogen economy and cross-border infrastructure. The company previously estimated it would need around 1.4 million tonnes of green and blue hydrogen for the initial 10 years of operation of its first DR plant.
A spokesperson told Kallanish its hydrogen procurement plans haven’t changed, though timeframes might be tweaked to reflect market conditions.
“Our call for tenders for hydrogen procurement is currently underway and the evaluations have not yet been completed. When this process is completed, we will be able to take a first detailed look at hydrogen supply and procurement prices,” the representative explains. “However, we have noticed that there are delays in the development of infrastructure and production capacities in various places. Therefore, in view of the overall situation, the effects on hydrogen availability and prices must be continuously derived and integrated into our business model.”
As a result, the company notes that the timing for the use of hydrogen and the transition from a natural gas to hydrogen operation is currently under negotiations. “We will use hydrogen as soon as it makes both technical and economic sense and is possible. The exact timing of the switchover cannot yet be estimated.”
In a separate statement, tk said it was having “constructive talks” with stakeholders to ensure the economic viability of this major DR investment project “in the quickly evolving framework conditions.”
Source:Kallanish
