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Thyssenkrupp readies hydrogen tender for Duisburg steel plant

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Europe 27 Jan 2024 12:02 PM IST GMK Centre

Thyssenkrupp is preparing a tender for the purchase of up to 151 thousand tonnes annually of renewable and low-carbon hydrogen under 10-year deals for expected volumes beginning in 2028 for its Duisburg steel plant. The project is anticipated to receive 104 thousand tonnes of hydrogen in 2028, with a further rise to 143 thousand tonnes annually in 2029-2035. 15 thousand tonnes per year is expected to be reached in 2036-2037.

The volumes offered for the tender must meet the requirements of the EU Renewable Energy Directive for renewable and low-carbon hydrogen, in accordance with the current CO2 emission reduction provisions. The first stage of the tender will start in February 2024, when interested companies will receive requests for information. In the second quarter of 2024, Thyssenkrupp will issue requests for proposals, in the third quarter – a request for quotations. During the tender process, the price of hydrogen will be determined.

This plant will be connected to Germany’s planned national hydrogen pipeline network at an early stage. The company intends to finish the construction of its direct reduction units (DRI) at the plant, which will use pure hydrogen, by the end of 2026. It is planned to generate 2.5 million tonnes of DRI per year.

This is the second tender for the supply of clean hydrogen declared by a private company in Europe. The first was TotalEnergies’ announcement of 500 thousand tonnes per year by 2030 for its European refineries. It was started in September 2023. The decarbonisation of the steel industry will continue to be a leading theme in 2024. Adequate supplies of clean hydrogen and renewable energy at competitive prices will be essential in this process.