thyssenkrupp Steel has placed an order with Düsseldorf-based
SMS Group, for the engineering, delivery and construction of the first hydrogen-powered direct reduction plant at its Duisburg site in Germany. This marks the start of one of the largest industrial decarbonisation projects in the world, which will prevent more than 3.5 million metric tonnes of CO
2 entering the atmosphere each year. The order volume for SMS amounts to over 1.8 billion euros, and also marks the largest single order in the history of the company.
The plant will have a capacity of 2.5 million metric tonnes of directly reduced iron (DRI), and is scheduled for completion by the end of 2026. The overall project remains subject to European Union (EU) approval under state aid provisions, as well as the final funding decision, but both are expected in the coming months. The state of North Rhine-Westphalia and the German government have already signaled substantial financial support for the project.
The contract award marks a decisive technological turnaround for Germany’s biggest steelmaker in its more than 200-year history — as part of the
tkH2Steel transformation concept, the replacement of CO
2-intensive steel production by climate-friendly technologies is now underway. Up to this point, coal-based hot iron production in the blast furnace has always produced large amounts of CO
2 — about 20 million metric tonnes per year from the Duisburg plant alone.
Hydrogen-based processes in direct reduction plants offer a significant basis for manufacturing the carbon-neutral steel of the future. thyssenkrupp Steel is already planning to prevent as much as six million metric tonnes of CO
2 entering the atmosphere by 2030, representing well in excess of 30% of its emissions. The transformation to carbon-neutral production should be completed by 2045 at the latest.
In pursuit of the best technological solution, thyssenkrupp will be the first steelmaker in the world to combine a 100% hydrogen-capable direct reduction plant with innovative melters. Positioning the two melters immediately adjacent to the direct reduction plant allows the solid input stock produced there to be converted into molten iron immediately; this makes the entire process particularly efficient. In addition, the spatial requirements and constraints a complex iron and steel plant involves can be taken into account.
Consistently high-product qualityThe direct reduction plant is based on Midrex Flex technology. SMS will also deliver the innovative melters, slag granulation and other auxiliary equipment — for example, water recycling. SMS is building the plant on an EPC basis which means the company bears overall responsibility for the engineering, procurement and construction of the plant. In addition, significant further work is required relating to structural and civil engineering, infrastructure and media supply.
The innovative concept ensures consistently high-product quality. This is because it is seamlessly integrated into the existing iron and steel plant, thereby allowing all subsequent process steps from the steel mill onward to be maintained and as a result, the existing plant structure can be used efficiently.
Importantly, the ‘green’ transformation will also preserve many thousands of high-quality and highly qualified jobs. The innovation alliance between thyssenkrupp Steel and SMS will also call for new qualifications, in addition to the jobs created during the construction of Germany’s largest direct reduction plant.
The detailed planning and preparatory work for construction of the direct reduction plant will commence immediately, under the scope for an earlier start to work approved by the German government. One of the tasks on the list involves getting the construction site ready on the plant premises of thyssenkrupp Steel.
Martina Merz, CEO thyssenkrupp, said: “At thyssenkrupp, we are doing everything in our power to accelerate the ‘green’ transformation. This is also the reason why, despite all the challenges and uncertainties, we are already launching the direct reduction plant. We cannot wait until all the issues have been resolved. We must act now and invest now if we want to achieve our climate targets and secure the future of this industrial location.”
Burkhard Dahmen, SMS Group CEO, said: “This project means a great deal to us. thyssenkrupp and SMS have been working together closely for many decades now. We are looking forward to taking responsibility for this forward-looking project as well. We are also delighted that our technology, know-how and our expertise in project management will support the green transformation at Germany’s biggest steel producer.”