Thyssenkrupp Steel has signed a long-term power purchase agreement (PPA) with RWE to supply the direct reduction plant (DRI) with green electricity. The plant in Duisburg is to be powered by hydrogen from 2028. The steel manufacturer has launched a tender for this.
Thyssenkrupp Steel has concluded a PPA with the energy company for the supply of green electricity to its DRI plant. The contract with a term of 10 years provides for a supply volume of approx. 110 GWh per year. The electricity is to be generated at the RWE North Sea offshore wind farm Kaskasi, 35 km off the coast of Heligoland. Further contracts with green electricity producers are required to fully supply the plant with green electricity.
According to Ulf Kerstin, CCO of RWE Supply & Trading, Kaskasi is its sixth wind farm in the German North Sea. Others are already under development. For example, the energy group wants to use the North Sea cluster to create a further 1.6 GW of offshore wind power in the coming years.
Through the PPA, offshore wind energy will make a significant contribution to the energy supply of the tkH2Steel transformation project in the future. The partnership with RWE is an important component of the energy strategy for sustainable steel production, according to Thyssenkrupp Steel. This strategy aims to gradually increase the demand for electricity generated from renewable sources. In this way, the steel producer wants to "set the course for climate-neutral production."
Tender for the hydrogen supply
The company has officially launched the tender for the hydrogen supply for its first DRI plant. The hydrogen requirement will be put out to tender in a transparent and broad-based process. The first use of hydrogen is planned for 2028. In 2029, the plant will then run on 100% hydrogen. The Group requires around 143,000 tons of H₂ (equivalent to approx. 5.6 TWh) to operate the DRI plant. This should then produce around 2.3 million tons of regeneratively produced pig iron per year, which could avoid up to 3.5 million tons of CO2 emissions annually.
The tender is being carried out in close coordination with the Federal Ministry of Economics and Climate Protection (BMWK). The tender for hydrogen volumes was already advertised via various federal and EU portals in mid-December. The tendering process is divided into three phases and is aimed at all potential hydrogen suppliers who have projects for the production of green or blue hydrogen with delivery options to Duisburg.
