German power group Steag GmbH will supply green hydrogen to a steel site of industrial group Thyssenkrupp AG (ETR:TKA) in Duisburg from a planned nearby electrolysis plant of up to 520 MW.
The two companies have signed a Memorandum of Understanding on the partnership based on the positive results of a feasibility study, Steag said on Monday.
Deliveries are expected to start in 2025 when a direct reduction plant is set to be commissioned at the site of Thyssenkrupp Steel in Duisburg to produce hydrogen from renewable energy. The hydrogen and oxygen released after the electrolysis will be used for the production of raw iron, replacing the use of coke in a blast furnace. Thus, the steel made at the Duisburg site will be climate-neutral across the entire value chain.