Since its launch in 2016, the project has focused on how gases produced during steel manufacturing can be transformed into valuable chemical feedstocks – for example, for fuels, plastics, or fertilizers. Over the years, this research project, funded by the German Federal Ministry of Education and Research (BMBF), has already delivered groundbreaking insights that are expected to support the sustainable transformation of industry.
The third phase will concentrate on the practical validation of the developed solutions, their adaptation for gases produced by direct reduction processes in steelmaking, and a deeper investigation into the production and storage of methanol and hydrogen. To support this, Dr. Karl Eugen Huthmacher, State Secretary at the BMBF, today presented an additional €50 million funding grant valid through 2028.
Second Project Phase Concluded with Major Insights
In the previous project phase, researchers successfully demonstrated that methanol production is technically feasible across varying CO/CO₂ ratios. They also confirmed the suitability of large-scale hydrogen storage in caverns – particularly in the northern Ruhr region. Furthermore, additional carbon sources, such as those from lime reduction, thermal waste treatment, and direct reduction, were identified as viable for methanol production.
“The results of the second project phase are impressive and show the tremendous potential of Carbon2Chem® for industrial decarbonization,” said Carolin Nadilo, CFO of thyssenkrupp Decarbon Technologies, during the handover of the funding notice. “This project highlights our commitment to reducing global industrial CO₂ emissions with innovative technologies and accelerating the green transformation. We thank the Federal Ministry for its continued trust and financial support in this vital project for achieving climate goals.”
“Carbon2Chem® is a remarkable example of how research can directly contribute to making industrial processes more climate-friendly. The progress made so far brings us significantly closer to a circular carbon economy – especially in the fields of steel production, chemicals, and energy,” added Dr. Karl Eugen Huthmacher.
New Challenges and Expanded Scope in Phase Three
Since the project began nine years ago, the framework conditions for industry have changed significantly. The third phase will respond to these new challenges by advancing the validation of developed technologies, adapting them to gases from direct reduction, and thoroughly analyzing the quality of methanol and hydrogen – both in terms of production and storage. A new generation of electrolyzers will be developed as part of this effort. Additionally, production will be scaled up, with value chains extended to include sustainable aviation fuels.
“The challenges and opportunities that come with building a sustainable energy system require innovative solutions that go beyond the boundaries of individual industries,” emphasized Prof. Dr. Walter Leitner, Director at MPI CEC. “Carbon2Chem® is a flagship initiative and a prime example of successful integration between basic research, applied science, and industrial practice.”
The project has also secured new high-profile partners for this next phase, including BASF, EY Consulting GmbH, the University of Hagen, and the University of Duisburg-Essen.
“Having these new partners on board is a great asset. Together, we will further develop Carbon2Chem® and bring the technology to market readiness,” said Prof. Dr.-Ing. Görge Deerberg, Carbon2Chem® Project Coordinator and Director of Transfer at Fraunhofer UMSICHT. “With these new focal points and partners, the research project is entering a promising phase and will contribute significantly to sustainable industrial transformation.”
About Carbon2Chem®
Carbon2Chem® is an interdisciplinary initiative that brings together industry, science, and policy to unlock the potential of industrial process gases as a carbon source for the chemical industry. With over 16 partners and extensive public funding, it stands as one of Germany’s flagship projects for driving green industrial transformation.
As a pioneer of sustainable industry, thyssenkrupp is working intensively across all business areas to replace CO₂-intensive production methods with climate-friendly technologies. One such example is the construction of the first hydrogen-capable direct reduction plant at its Duisburg site – one of the world’s largest industrial decarbonization projects. The company also actively supports its customers in their green transformation journeys. The newly established "Decarbon Technologies" segment, founded just over a year ago, is already one of the world’s largest and most recognized providers of cutting-edge technologies in the field of sustainability.
