Thyssenkrupp Delays Duisburg Green Steel Plant Start-Up to 2029

Key Facts

Thyssenkrupp has postponed the start of production at its green steel plant in Duisburg to 2029, from a previous target of 2027, according to a report published by dpa-AFX on November 6. The delay marks a further change to the timeline for the decarbonization project being carried out by the German group's steel division. The company attributed the delay mainly to the engineering phase, the report said. In its revised funding decision, the European Commission separately pointed to construction delays linked to the project's innovative nature. The published explanations point to both design and execution hurdles in a large-scale industrial project.

The project involves building a hydrogen-powered direct reduction plant with planned annual capacity of 2.5 million tonnes of directly reduced iron, according to thyssenkrupp Steel. The design includes two melting units alongside the reduction shaft, and the company says the plant will be fully capable of using hydrogen. That capacity places the project among the company's major industrial transformation initiatives in Duisburg. Thyssenkrupp Steel also estimates that the plant could cut carbon dioxide emissions by up to 3.5 million tonnes a year. That figure is tied to the plant's targeted operating capacity, while the start of production remains delayed until 2029.

The company said construction work is continuing at the site and that teams have completed formwork, reinforcement and the pouring of large volumes of concrete for the direct reduction plant's shaft and two melting units. The continuation of this work indicates that the delay has not halted the project, despite the change to the production date. The shaft and melting units are key elements of the planned production process. The company did not specify a new date for completing construction or starting up the units in its statement. The European Commission's updated funding decision, however, linked the construction delay to the project's innovative nature, while the company's explanation focused on the engineering phase.

The revised European funding terms include final requirements, according to thyssenkrupp Steel, and allow for a gradual and more flexible increase in hydrogen's share of operations. This comes as the company says hydrogen production capacity, transport pipelines and import routes are not yet available at the required scale. It added that green hydrogen remains far more expensive than expected and is not available on competitive terms. The company says this makes greater flexibility in raising the hydrogen share necessary, rather than relying on large-scale supplies from the outset. In its statement, it said: "Green hydrogen is much more expensive than originally expected and is not yet available on competitive terms."

The project's original timeline dates back to earlier company announcements: in 2022, thyssenkrupp said production at the plant would begin in 2026 and that the investment exceeded 2 billion euros. The company then announced in 2023 that start-up was planned for the end of 2026, before the date was later revised to 2027 and then to 2029. These successive revisions show the widening gap between the original investment plan and the current production date. In its revised funding announcement in October 2026, the company said a new tender would precede a gradual increase in hydrogen use. This background provides context for the current delay as part of changes to the schedule and supply requirements.

Thyssenkrupp Steel is preparing to launch a new tender to secure long-term hydrogen supplies and said it is due to be issued soon. The tender is the next announced step in securing the fuel needed for the plant, alongside the continuation of construction work. Supply arrangements will determine whether hydrogen's share can be increased gradually under the revised funding terms. Meanwhile, limited infrastructure and the high cost of green hydrogen remain among the obstacles cited by the company. The statement did not give a specific date for the tender or a new timetable for increasing hydrogen use.