STEAG and German steel producer Thyssenkrupp have signed a memorandum of understanding on the delivery of green hydrogen and oxygen from the former’s HydrOxy Walsum plant in Duisburg, North Rhine-Westphalia.
An investment decision on the 520MW hydrolysis plant is expected to be taken in 2023, with delivery of the gases starting in 2025.
STEAG said the electrolysis will operate entirely with electricity generated from renewable sources.
It added that the MoU is a significant milestone on the road to implementing the project.
STEAG director with responsibility for market and technology Ralf Schiele said: “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.”
Thyssenkrupp Steel head of decarbonization Marie Jaroni said: “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.
“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.”