EuroWire May 2023

Corporate News

Major industrial decarbonisation project gets under way

already signalled substantial financial support for the project. As part of the tkH2Steel transformation concept, the replacement of CO 2 -intensive steel production by climate-friendly technologies is now beginning. Previously, coal-based hot iron produc- tion in the blast furnace always involved emitting large amounts of CO 2 , amounting to around 20mn metric tons per year from the Duisburg location alone. Hydrogen-based processes in direct reduction plants offer a significant basis for manufacturing carbon-neutral steel in the future. thyssenkrupp Steel is already planning to avoid as much as 6mn metric tons of CO 2 by 2030, representing in excess of 30 per cent of its emissions. The transformation to carbon-neutral production is expected to be completed by 2045 at the latest. SMS group GmbH www.sms-group.com

thyssenkrupp Steel has placed an order with SMS group, Germany, for the engineering, delivery and construction of the first hydrogen-powered direct reduction plant at its location in Duisburg, thyssenkrupp Steel CEO Bernhard Osburg (left) and Burkhard Dahmen, CEO of SMS group

Germany. The order marks the start of one of the largest industrial decarbonisation projects worldwide, which will avoid more than 3.5mn metric tons of CO 2 per year in the future. The order volume for SMS amounts to more than €1.8bn, making it the largest single order in the company’s history. Significant structural building services will be required in addition to infrastructure and media connections. The preliminary tasks can be started immediately, under the scope for an earlier start to work that has been approved. The plant will have a capacity of 2.5mn metric tons of directly reduced iron (DRI), and is scheduled for completion by the end of 2026. The overall project remains subject to European Union approval under state aid provisions, as well as the final funding decision. Both are expected in the coming months. The state of North Rhine-Westphalia and the German government have

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May 2023