The project, based in Duisberg, Germany, will integrate a water electrolysis plant of up to 520MW in order to generate green hydrogen that will be used in green steel manufacturing.

Hydrogen will be used to replace coke and coal in an electric furnace providing a means to decarbonise the steelmaking sector in Europe sand present an opportunity for further projects across the continent.

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With an investment decision on the water electrolysis project expected to be taken by 2023 at the latest, the delivery of the system is planned to start in 2025.

Dr. Marie Jaroni, Head of Decarbonisation at thyssenkrupp Steel, said, “Our goal is to make thyssenkrupp Steel climate neutral by 2045. As an interim step, we are already aiming to significantly reduce our emissions by 30 percent by 2030.

“We will put a so-called direct reduction facility into operation on the thyssenkrupp Steel site in Duisburg. This will enable iron to be produced with almost zero emissions using hydrogen rather than by burning coke in a blast furnace.”

Dr. Ralf Schiele, Director with responsibility for Market and Technology at STEAG, said, “Hydrogen is playing an increasingly important role in the energy transition.

“The water electrolysis will operate entirely with electricity generated from renewable sources. This will enable zero-carbon hydrogen production, which means the steel produced using our hydrogen will also be climate neutral when viewed across the entire value chain.”