(News Bulletin 247) – The European Commission announced yesterday that it has authorized two German measures aimed at helping ThyssenKrupp Steel Europe (‘tkSE’) to decarbonise its steel production processes and accelerate the use of renewable hydrogen.
The aid can take the form of a directed grant of up to €550 million to help tkSE decarbonise its steel production and a conditional payment mechanism to help tkSE accelerate the gradual introduction of renewable hydrogen into its steel production processes.
The direct grant will support the construction and installation of a direct reduction plant and two steel foundries in Duisburg, which will replace an existing blast furnace.
The conditional payment mechanism will cover, during the first ten years of operation of the new direct reduction plant, the additional costs of purchasing and using renewable hydrogen instead of low-carbon hydrogen.
The new facilities are expected to start operating in 2026 and are expected to produce 2.3 million tonnes of hot metal per year with a reduced carbon footprint, this volume to replace an equivalent amount of hot metal currently produced using the conventional blast furnace.
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