Based on a favorable feasibility study for a water electrolysis plant with a capacity of up to 520 MW prepared by STEAG and thyssenkrupp, the two partners have inked an MOU for the delivery the of hydrogen and oxygen to thyssenkrupp Steel in Duisburg from the neighboring STEAG site in Duisburg-Walsum.

This will see the planned water electrolysis facility making an important contribution to the decarbonization of Europe’s largest steelmaking site. “Hydrogen is playing an increasingly important role in the energy transition,” said Dr. Ralf Schiele, STEAG director with responsibility for Market and Technology. Schiele added that hydrogen offers the opportunity to avoid CO₂ emissions in industry, the mobility sector and the energy industry, and thereby to achieve the targeted climate goals.

Decarbonization of the steel industry

In the case of the steel industry, hydrogen and oxygen, which is automatically produced as a by-product during synthetic hydrogen production, mean that the use of carbon-rich coke can be dispensed with in iron production in the future.

“Our goal is to make thyssenkrupp Steel climate neutral by 2045. As an interim step, we are already aiming to significantly reduce our emissions by 30% by 2030,” said Dr. Marie Jaroni, Head of Decarbonization at thyssenkrupp Steel.

STEAG’s planned water electrolysis in Walsum will make an important contribution to achieving these ambitious goals, she added.

The investment decision for the water electrolysis project with an installed capacity of up to 520 MW at the Walsum site is expected to be taken by 2023 at the latest, with delivery to thyssenkrupp Steel planned to start in 2025.

“We will then put a so-called direct reduction facility into operation on the thyssenkrupp Steel site in Duisburg. This will enable iron to be produced with almost zero emissions using hydrogen rather than by burning coke in a blast furnace,” Jaroni said.

Green hydrogen for green steel from Duisburg

STEAG guarantees that the hydrogen produced in Walsum will be climate neutral.

“The water electrolysis will operate entirely with electricity generated from renewable sources. This will enable zero-carbon hydrogen production, which means the steel produced using our hydrogen will also be climate neutral when viewed across the entire value chain,” said Schiele.