Germany-based steel producer thyssenkrupp Steel placed an order worth over Euro 1.8 billion with SMS group for construction of the first direct reduction plant as part of the tkH2Steel transformation concept. The plant will have a capacity of 2.5 million tonnes of directly reduced iron, and is scheduled to be completed by late 2026. The project is currently in approval stages for state aid provisions and final funding decisions under the European Union.

Germany’s biggest steel maker thyssenkrupp Steel has awarded a contract worth Euro 1.8 billion to SMS group in Düsseldorf, for the construction of the company’s first and Germany’s largest hydrogen-powered direct reduction plant, with a capacity of 2.5 million tonnes of DRI. The upcoming plant is a part of thyssenkrupp’s tkH2Steel transformation concept and will become one of the biggest industrial decarbonization projects in the world, avoiding more that 3.5 million tonnes of CO₂ per year in the future. thyssenkrupp Steel is already planning to avoid as much as 6 million tonnes of CO₂ by 2030, representing well in excess of 30 percent of its emissions. This order also marks the largest order in the history of the 150 years old North Rhine-Westphalia based company, SMS Group. The project is currently under approval for stated aide provisions and final funding decisions under the European Union. However, the North Rhine-Westphalia state as well as the German government have already signaled substantial financial support for the project.

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Through this project, the two companies are forming a partnership for innovation and efficient industrial climate change mitigation. Bernhard Osburg, CEO of thyssenkrupp Steel shared, “It is a historic day for thyssenkrupp Steel and good news for industrial climate change mitigation – since, just by itself, our first direct reduction plant will enable us to avoid emitting 3.5 million metric tons of CO₂.” Talking about their partnership with SMS group, he said “Together, we intend to demonstrate that an innovative and sustainable transformation of the steel industry is possible in Germany and Europe. We are thus creating the basis for tomorrow’s green steel markets.”