Thyssenkrupp Materials Processing Europe will offtake up to 100,000 tonnes of hydrogen-based flat steel per year from Hydnum Steel’s planned plant in Puertollano, Spain.
Under a seven-year agreement, Hydnum’s green steel will support Thyssenkrupp’s efforts to decarbonize its supply chains in the automotive, construction, and appliance industries. As one of the world’s leading mill-independent materials distributors and service providers, Thyssenkrupp aims to drive sustainability across its operations through this partnership.
Reports suggest that the partnership with Hyndum Steel will help the German energy firm expand its sustainable steel while meeting the rising customer demand for greener materials.
“Interest in clean steel is growing rapidly, we need partners like Hydnum to offer solutions that combine sustainability and innovation,” said Marcus Wöhl, CEO of Thyssenkrupp Materials Processing.
A seven-year supply agreement between Hydnum Steel and Thyssenkrupp will take effect once Hydnum’s €1.65 billion ($1.78 billion) Puertollano plant becomes operational. The facility, which received Spanish government backing last July, is set to begin phased construction between 2026 and 2029.
Once fully operational, the plant is expected to reduce CO2 emissions by nearly five million tonnes annually. The Spanish company has already secured a €80m ($86m) deal with Germany’s Knauf Interfer for green steel supply from the Puertollano plant.
Eva Maneiro, CEO of Hydnum Steel, said, “We are building something more than steel; we are setting the standard for what it means to be sustainable in the 21st century and demonstrating that it is possible to produce steel another way”.
As the research has proven, Steel produced using Green Hydrogen could cost double the conventional steel, however, industry reports suggest that refineries will play a key role in expanding hydrogen supply, with green steel emerging as a major demand.
Thyssenkrupp has faced challenges with hydrogen supply in its steel plant in Germany. However, last month, the group’s CEO Miguel Lopez warned that the company’s €3bn ($3.3bn) hydrogen-based facility could risk becoming a stranded asset unless Germany secures adequate green hydrogen supply.