Thyssenkrupp CEO Miguel Lopez has warned that the company’s €3bn ($3.3bn) hydrogen-based steel plant in Germany risks becoming a stranded asset unless the country can secure adequate supplies of green hydrogen.
Currently under construction in Duisburg, the plant has already secured €2bn ($2.2bn) in government funding, with Thyssenkrupp committing a further €1bn ($1.1bn) – its largest single investment to date.
Using direct-reduced iron (DRI) technology, it’s set to produce 2.5 million tonnes of green iron annually, later converted into steel. From 2028, it’ll demand at least 104,000 tonnes of clean hydrogen annually- rising to 143,000 tonnes by 2029 and peaking at 151,000 by 2036. Thyssenkrupp put out a supply call last year.
In a speech addressed to the regional parliament of North-Rhine Westphalia, Lopez said, “With this project, we are not only pushing the boundaries of what is technologically feasible. We are also currently operating at the limits of economic viability.
“Under the current conditions, there is no guarantee that we will be able to operate the plant economically in the foreseeable future.”
The CEO warned that if this doesn’t change, “there is a risk that Duisburg will be home to one of the world’s most modern steel production plant – without an adequate supply of the desired green hydrogen.”
Lopez stressed the urgent need for hydrogen pipelines across Germany and Europe to ensure delivery to where it’s needed. His comments echo concerns raised last year by Laura Droste of the German Energy Agency (DENA), who warned that Germany faces an uphill battle to add a further 9GW of hydrogen capacity to hit its 2030 targets.
“And we need affordable energy prices – especially if the energy is to be green,” Lopez continued.
“This is another reason why it is so important that a new federal government with a growth-oriented industrial policy resolutely addresses the big issues – here and in Europe.”
Gascade kicked off the filling of a section of Germany’s planned 9,000km hydrogen core network earlier this month. Meanwhile, Sefe Energy signed a deal with ACWA Power to secure 200,000 tonnes of green hydrogen annually from 2030, set to flow through the core network.
Germany’s 9,000km hydrogen gamble: Will the Wasserstoff-Kernnetz pay off?
“We are creating security for everyone involved – from hydrogen producers at home and abroad to the operators of power plants and storage facilities and future industrial users.”
That was the message from German Vice-Chancellor and Minister for Economic Affairs and Climate Protection, Robert Habeck, when his government’s plans for a 9,040km ‘Wasserstoff-Kernnetz’ or hydrogen core network (HCN) were approved by the Federal Network Agency (BNetZA).
The HCN will cover the width of the country, resulting in a feed-in capacity of 101GW of hydrogen and a feed-out capacity of 87GW. Expected to complement the nation’s ambitious hydrogen production and import strategy, the network will connect import terminals to industrial hubs located throughout the country.
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