Thyssenkrupp Steel launches tender for up to 151,000 tonnes of annual clean hydrogen supply in Germany

Thyssenkrupp Steel Europe, Germany's largest steelmaker, is embarking on an ambitious venture to reduce emissions at its Duisburg plant, the country's largest steel mill. The company has initiated a tender to secure up to 151,000 tonnes of green or blue hydrogen supply for the direct-iron reduction (DRI) facilities under construction at the Duisburg plant. This initiative aims to leverage clean hydrogen to extract iron from ore and is expected to be operational by the end of 2026, with an annual DRI production capacity of 2.5 million tonnes.

In its call for proposals, Thyssenkrupp is seeking ten-year contracts for a projected volume requirement, including 104,000 tonnes of renewable or blue hydrogen in 2028, 143,000 tonnes annually between 2029 and 2035, and 151,000 tonnes in both 2036 and 2037. Meeting these targets would necessitate approximately 1.5 gigawatts (GW) of electrolysers and potentially 3 GW of additional renewable power, adhering to EU additionality requirements.

The proposed hydrogen supply will be facilitated through the planned national hydrogen pipeline network, allowing flexibility for production from anywhere globally. A company spokesperson emphasized the intent to utilize the public hydrogen grid for supply, highlighting the planned 40km hydrogen pipeline connecting Dorsten to the Duisburg district of Hamborn, where the steel mill is located, offering a secure link to a broader hydrogen network.

Germany aims to launch its national hydrogen pipeline network in 2025, with 9,700km expected by 2032. This initiative by Thyssenkrupp marks the second tender for green hydrogen supply in Europe, following TotalEnergies' call for 500,000 tonnes per year by 2030 for its European refineries, initiated in September 2023.

Thyssenkrupp Steel's LinkedIn post extends an invitation to potential hydrogen suppliers, emphasizing their pivotal role in one of the world's most significant decarbonization projects. The company envisions contributing to the rapid expansion of hydrogen infrastructure in North Rhine-Westphalia, Germany, and neighboring European countries, fostering job creation in the hydrogen value chain.

Until 2028, the DRI facility will operate primarily on natural gas, forming part of the fuel mix until 2037. Expressions of interest are currently being sought, with subsequent stages including requests for proposals and quotations later this year. The project, known as tkH2Steel, includes two new "melters" and is slated to receive nearly €2 billion ($2.18 billion) in grants from the federal and state governments. This funding covers the construction of new facilities and the procurement of green or blue hydrogen, with the latter involving fossil gas with carbon capture and storage.