The dawn of a new industrial era is on the horizon, spearheaded by Thyssenkrupp, Germany’s largest steel producer.
A significant decision looms: will billions of dollars in aid be granted to accelerate the production of climate-friendly steel, thus promising a greener future? As relayed by the Federal Minister of Economics Robert Habeck, the verdict is anticipated to arrive by the summer.
The growing urgency around this issue was palpable at a recent rally in Duisburg, where approximately 12,000 steelworkers gathered to underscore the gravity of the situation. The rally was organized by IG Metall, Germany’s largest union and a key stakeholder in this matter. Union representatives were forthright about the need for the promotion of green steel. IG Metall board member and Deputy Chairman of the Supervisory Board of the parent company Thyssenkrupp AG, Jürgen Kerner, stated, “We want to produce green steel. Not at some point, but now.”
The ambitious proposal at the heart of this unfolding drama involves the establishment of a direct reduction plant in Duisburg. A marvel of modern engineering, this facility aims to pioneer the production of “green steel” utilizing climate-neutral hydrogen. The potential benefits are manifold, not least of which is a significant decrease in greenhouse gas emissions from steel production.
Yet the realization of this green dream hinges on financial support from the state of North Rhine-Westphalia and the federal government, which intends to inject approximately two billion euros into the project. However, EU Commission approval under state aid law remains a critical piece of the puzzle, and it is yet to be granted.
Habeck indicated that the ball is rolling. A written document received from Brussels declares their readiness to allocate the two billion euros. The ball is now in the penalty spot, with the corporate decision being the decisive kick. He emphasized the political will to make this transformation happen. This is not just about the future of Thyssenkrupp or the German steel industry, but the entire industrial landscape.
Support for the project is strong among local authorities. Hendrik Wüst, North Rhine-Westphalia’s Prime Minister, reaffirmed the state’s backing for the project, highlighting the central role Duisburg plays in German industry. NRW Economics Minister Mona Neubaur also echoed these sentiments, saying, “We want green steel, we want industrial jobs in NRW across the board.”
Thyssenkrupp Steel Europe stressed the necessity of translating these declarations of intent into concrete plans and legal certainty. The stakes are high, not only in terms of the billions in investments but also in the goal of ensuring competitive, decarbonized steel production in Germany. The company views itself as the starting point and anchor point of a European hydrogen economy.
Thyssenkrupp is not alone in its ambition to produce green steel. Salzgitter, among three other German steel producers, plans to build similar plants and has already secured one billion euros in funding.
Thyssenkrupp’s endeavor signifies a significant turning point in the steel industry. By shifting towards more sustainable processes, the company could lead the way in decarbonizing the sector. Although the journey into this uncharted territory entails substantial risks, it holds.
