Thyssenkrupp is moving closer to securing revised financing terms for its €3 billion green steel plant in Duisburg, Germany, as the steelmaker adapts the project to changing economic and hydrogen market conditions.Around two-thirds of the investment is backed by public funding from Germany’s federal government and the state of North Rhine-Westphalia. The original support was linked to the use of renewable hydrogen, but limited availability and high costs have made immediate hydrogen-based production difficult.
The European Commission has now approved proposed changes to the funding framework, confirming that the revised conditions comply with EU state aid regulations. This clears the way for German authorities to update the funding decisions and maintain financial support for the project.
The Duisburg direct reduction plant is a major part of Thyssenkrupp’s strategy to decarbonize steel production. Under the revised approach, the facility can begin operations without relying entirely on green hydrogen from the start, while retaining the potential to shift toward hydrogen as supply and infrastructure improve.The development provides fresh momentum to one of Europe’s biggest low-carbon steel projects and highlights the industry’s challenge of balancing ambitious decarbonization targets with current energy and hydrogen market realities.
