TK Steel preparing revised hydrogen tender for Duisburg plant in Germany

Thyssenkrupp Steel Europe AG will launch a revised renewable hydrogen tender "shortly" to secure volumes for the direct iron reduction plant at its Duisburg steelworks in Germany, the company told Platts, part of S&P Global Energy, on Nov. 4, though it declined to give volumes or a firm timeline for the process.

The move follows revised funding requirements for the tender, as the development of the hydrogen market in Europe "has fallen short" of expectations, the company said in a statement on Oct. 30.

It paused a previous tender in 2025 for 151,000 metric tons/year of renewable and low-carbon hydrogen under 10-year contracts for pipeline delivery to Duisburg, after early price indications from bidders were significantly higher than expected.

The company is now progressing with a new tender after revised funding requirements were approved under EU state aid law.

"The funding requirements had to be revised because the economic conditions have changed significantly since the original funding decision was made," the company said in the statement.

"Generation capacity, transmission lines, and import pathways are not yet available to the extent required," it said. "At the same time, green hydrogen is significantly more expensive than originally anticipated and is not yet available on competitive terms."

Platts, part of S&P Global Energy, assessed the cost of EU-compliant hydrogen production via alkaline electrolysis in Germany, backed by renewable power purchase agreements, at €14.19/kg ($15.69/kg) on Nov. 4.

The assessment reflects one possible pathway for producing EU Renewable Energy Directive-compliant green hydrogen.

The company declined to say whether the required hydrogen volumes or contract duration had changed.

Duisburg is scheduled to connect to the German hydrogen core pipeline network, currently in development, by the end of 2027, a Thyssenkrupp Steel spokesperson said in an email.

The hydrogen tender forms part of Thyssenkrupp Steel's decarbonization plans. The company is currently constructing the DRI plant at Duisburg, which will initially use natural gas in the reduction process before switching to hydrogen.

Natural gas enables a 50% CO₂ emissions saving compared with the coal-based blast furnace production route, it said.

The company said the slower market development and higher prices had a "direct impact on the economic viability of using hydrogen in the direct reduction plant."

The revised tender will align with market developments, it said.

"The revised funding requirements allow for a gradual and more flexible increase in the share of hydrogen."

Thyssenkrupp Steel said its goal of switching to 100% hydrogen-fed DRI remained unchanged, though it would increase the share of hydrogen gradually depending on availability, economic feasibility and customer demand.

"The new call for tenders will establish a solid foundation for the subsequent operational phase and, at the same time, send a clear signal to the market," the company said.

The new DRI plant with two smelters will have an annual production capacity of 2.5 million mt of directly reduced iron, and could cut CO₂ emissions by up to 3.5 million mt/year.