German utility Steag and steel firm Thyssenkrupp have signed an initial deal for the delivery of hydrogen and oxygen to a Thyssenkrupp plant in Duisburg from a neighbouring Steag site in Duisburg-Walsum.

The deal follows a feasibility study for a €500mn ($552mn) electrolysis plant with a capacity of 520MW. The firms will take FID by 2023 at the latest, with delivery of the fuels expected by 2025. Power for the facility will be generated exclusively from renewable sources.

Thyssenkrupp will then put a direct reduction facility into operation at its existing site in Duisburg, connected to the electrolyser by two 2km pipelines. This will enable iron to be produced with almost zero emissions using hydrogen rather than by burning coke in a blast furnace.

The electrolyser will make an important contribution to achieving Thyssenkrupp’s goal of becoming climate-neutral by 2045.

“As an interim step, we are already aiming to significantly reduce our emissions by 30pc by 2030,” says Marie Jaroni, head of decarbonisation at Thyssenkrupp Steel.

520MW – Size of electrolyser

The signing of the memorandum of understanding marks an important milestone on the road to implementing the project, according to Karl Resch, head of sales and origination at Steag.

“The positive outcome of the feasibility study and the plan for Thyssenkrupp Steel to purchase a large proportion of the hydrogen generated in Walsum in the future mean we can start drumming up funding and private investment capital,” he says.

Potential imports

Thyssenkrupp Steel is separately working with steel firm HKM and the Port of Rotterdam to evaluate opportunities to import hydrogen.

The firms will simultaneously investigate the possibility of a hydrogen pipeline between Rotterdam and facilities operated by Thyssenkrupp and HKM in Duisburg.

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Author: Tom Young