Frankfurt– The German conglomerate, Thyssenkrupp has been considering to halt their 3- billion- euro ($3.3 billion) decarbonisation project.
Thyssenkrupp is reviewing plans for production of green steel. The conversion to green steel is the prestige project of ThyssenKrupp and the Federal Government, but is subjected to termination due to partial sale.
Ridden by crisis, the company is reviewing the business plan for its steel division, Thyssenkrupp Steel Europe (TKSE), inclusive of its “green transformation “, which aims for carbon neutral steel production- which is considered to be one of the most environmentally harmful industrial process.
The group shared with Reuters, “In doing so, we are continuously examining the best and most economically viable solutions under the given conditions in terms of technology and results in order to make Thyssenkrupp’s steel business climate-neutral in the long term”.
Citing internal documents, Handebbaltt had reported that the company was considering scenarios such as the stop of the hydrogen based direct reduction project and the management of CEO Miguel Lopez has initiated a fundamental review of the ongoing project.
The company’s steel division, TKSE, with Czech billionaire Daniel Kretinsky owning a 20% stake, warned last month, that the planned direct reduction site in Duisburg could cost more than what they initially estimated of 3 billion euros ($3.29 billion).
Thyssenkrupp confirmed the statements saying that project was being reviewed with regard to the new cost estimates, adding that it currently assumed the site would be built. TKSE is currently at strong disagreement with its parent Thyssenkrupp over how much money the steel business needs to survive on its own, a dispute that caused the division’s leadership to resign at the end of August.