Germany Targets $2.1 Billion in Funding for Thyssenkrupp Green Steel Plant
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Germany is planning to make around 2 billion euros ($2.1 billion) available to help fund a green steel plant that Thyssenkrupp aims to build at its base in Duisburg, one of the struggling conglomerate’s key turnaround projects.
The 2 billion euros include 700 million euros of funds pledged by the German state of North Rhine-Westphalia, where Thyssenkrupp’s headquarters is located, and marks a major commitment to support one of Germany’s industrial icons.
“To this end, we are in close contact with the European Commission. Because one thing is clear: we also need steel production in Germany and Europe in the future,” a ministry spokesperson said in an emailed statement to Reuters on Monday.
Economy Minister Robert Habeck travelled to Essen and Duisburg on Monday to hold talks with Thyssenkrupp’s management and labour representatives, responding to weeks of criticism over what workers fear is lacklustre backing by Berlin.
Under its hydrogen-based climate strategy for steel production, dubbed tkH2Steel, Thyssenkrupp plans to commission a so-called direct reduction iron (DRI) plant for the climate-friendly production of 2.5 million tonnes of steel annually with a production start scheduled for 2026.
The company, which like its peers is under pressure to retool its entire production process and make it carbon neutral, estimates the costs for the site as well as required infrastructure at over 2 billion euros.