• Thyssenkrupp Steel Europe received revised funding conditions for its tkH2Steel project on October 30, allowing a more gradual hydrogen ramp-up based on availability, economics and customer demand, rather than a fixed switch date.
• The EU Commission confirmed the adjustments are compatible with European state aid rules; CFO Philipp Conze says the deal gives the company the planning certainty to proceed with construction, and a new long-term hydrogen supply tender will follow shortly.

Thyssenkrupp Steel Europe (TKSE) received the definitive revised funding notice for its tkH2Steel project on October 30. The EU Commission confirmed the adjustments are compatible with European state aid law. The revised terms allow the company to start the plant on natural gas and blend in increasing concentrations of hydrogen over time, with the pace tied to hydrogen availability, economics and customer demand. Full hydrogen operation remains the stated goal, but no revised timeline has been given.

TKSE cited economic conditions and the availability of hydrogen as reasons the original transition schedule was no longer workable. The company did not disclose the specific new funding criteria. CFO Philipp Conze said the revised agreement gives TKSE the “planning certainty” to move forward with construction.

The plant is a 2.5 million tonne per year direct reduction facility. It was originally expected to begin using hydrogen in 2028 and reach full hydrogen operation by 2029. A new long-term hydrogen supply tender is due to be launched shortly. The project remains backed by around €2 billion [$2.2 billion USD] in federal and North Rhine-Westphalia funding.

Other European Green Steel Projects

ArcelorMittal abandoned its planned DRI-EAF projects at Bremen and Eisenhüttenstadt in 2025, citing unfavourable energy, policy and market conditions, including the lack of commercially viable renewable hydrogen.

Stegra is continuing construction of its hydrogen-based steel plant in Boden, but said in September that it needs additional capital after completion costs rose above earlier estimates.

Salzgitter’s SALCOS project is still moving ahead, with first green steel from the new production route expected in the first half of 2027. Its 100MW electrolyser is designed to produce around 9,000 tonnes of green hydrogen a year, while the first SALCOS stage is sized for about 2 million tonnes of low-carbon crude steel annually. Salzgitter has postponed investment decisions on later SALCOS stages until 2028–2029.

Source:  FCW Team