The German industrial giant ThyssenKrupp is confronting a formidable challenge concerning its ambitious €3 billion investment in a hydrogen-based steel production facility in Duisburg. Despite its potential technological advancements, the plant’s future is marred by the lack of reliable green hydrogen supplies, a situation compounded by the current infrastructure constraints within Germany and wider Europe.
CEO Miguel Lopez’s recent address to North-Rhine Westphalia’s parliament underscored the plant’s reliance on green hydrogen to produce 2.5 million tonnes of green steel annually. From 2028, this endeavor will necessitate at least 104,000 tonnes of hydrogen each year, escalating to 143,000 tonnes by 2029 and eventually 151,000 tonnes by 2036. Without a guaranteed hydrogen supply, Thyssenkrupp risks owning a world-leading steel facility that cannot operate optimally. This risk illuminates the critical dependency of green technology on supporting infrastructure.
Crucially, the company’s predicament reflects broader systemic issues. Germany’s target of amplifying its hydrogen capacity by 9GW by 2030 highlights the nation’s energy transition challenges. In this context, available data suggests that the current pace of hydrogen infrastructure development, such as pipelines, is insufficient to meet impending demands.
Germany’s recent inauguration of part of a projected 9,000km hydrogen network, through Gascade, signifies a notable stride forward. However, this initiative’s ability to meet the burgeoning demand remains uncertain. Furthermore, an agreement by Sefe Energy to import 200,000 tonnes of green hydrogen by 2030 is a testament to a growing recognition of the forthcoming supply gap but does little to ameliorate immediate concerns.
With Vice-Chancellor Robert Habeck’s endorsement of the Wasserstoff-Kernnetz’s 9,040km plans, the federal government’s commitment to developing a robust hydrogen economy is evident. This network aims to interconnect import terminals with key industrial zones, potentially enhancing the nation’s hydrogen production and import strategy. However, its efficacy depends on swift execution and seamless integration into existing supply chains.
Thyssenkrupp’s case is emblematic of the multilateral pressure to reconcile ambitious green targets with economic pragmatism and infrastructural readiness. A coherent and expedient policy response, both at the national and European levels, maybe the lynchpin in shifting from isolated megaprojects to a harmonized and sustainable industrial ecosystem.
