German steel producer thyssenkrupp Steel announced that the revised public funding terms for its tkH2Steel project in Duisburg have been finalized. The company is preparing to launch a new long-term hydrogen supply tender for the facility, which is planned to have an annual direct reduced iron (DRI) production capacity of 2.5 million tons.
thyssenkrupp Steel announced on October 30, 2026, that the revised public funding terms for its tkH2Steel project in Duisburg had been finalized.
The project’s funding terms were finalized following amendments previously approved by the European Commission as compliant with European Union state aid regulations.
Under the revised terms, the company plans to gradually increase hydrogen use at the direct reduction plant in line with current market conditions.
New hydrogen supply tender to be launched
thyssenkrupp Steel announced that it was preparing a new tender to secure the direct reduction plant’s long-term hydrogen requirements, with the process expected to begin shortly.
The company’s initial tender process provided information on hydrogen prices, available supply volumes and supply chains.
The company stated that the new tender would take into account the information obtained from the previous process and the revised funding terms.
thyssenkrupp Steel expects to become one of Europe’s largest industrial hydrogen consumers once the direct reduction plant begins operations.
Funding terms updated to reflect hydrogen market developments
According to the company, economic conditions have changed significantly since the initial funding decision.
The slower-than-expected development of hydrogen production capacity, transmission pipelines and import infrastructure has affected the project’s hydrogen supply plans. Funding terms were also revised because green hydrogen prices remained above initially projected levels.
The revised arrangement allows hydrogen use at the direct reduction plant to increase more flexibly, depending on availability, economic feasibility and customer demand.
The plant is designed to operate on natural gas, hydrogen or a mixture of both. The company stated that even when operating entirely on natural gas, the facility could reduce CO₂ emissions by more than 50% compared with the existing coal-based blast furnace production process.
The company’s long-term objective is to gradually increase the share of hydrogen and ultimately transition to production using hydrogen exclusively.
Plant to have annual DRI capacity of 2.5 million tons
The tkH2Steel project in Duisburg includes the construction of a direct reduction plant capable of operating entirely on hydrogen, along with two melting units.
The facility is planned to have an annual direct reduced iron (DRI) production capacity of 2.5 million tons and is expected to reduce CO₂ emissions by up to 3.5 million tons annually.
The company reported that formwork, reinforcement and large-scale concrete pouring work for the direct reduction plant tower and two melting units had been completed. Construction activities at the facility are ongoing.
Philipp Conze, Chief Financial Officer of thyssenkrupp Steel, stated that the revised funding decision provided planning certainty for the continued construction of the project.
Conze noted that the plant’s commissioning process would be shaped by current market conditions and emphasized that the company’s objective of producing steel with lower CO₂ emissions in Duisburg remained unchanged.
