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Key takeaways
- ThyssenKrupp is once again negotiating the financing of its €3 billion sustainable steel plant.
- Approval by the European Commission guarantees essential state aid under revised conditions.
- Adjusted agreements safeguard the feasibility of the project by scrapping impractical hydrogen requirements.
ThyssenKrupp is currently putting the finishing touches to negotiations to revise the financial arrangements for its €3 billion sustainable steel plant in Duisburg.
Changing economic conditions
According to the company’s Chief Financial Officer, these adjustments are necessary to respond to changing economic conditions.
Adjustment of financing conditions
The project budget is largely supported by the German federal government and the state government, which are covering two thirds of the total investment. Although the original subsidies were tied to the immediate integration of hydrogen, such a requirement is no longer feasible.
To avoid losing these funds, the organisation held extensive discussions with both German and European authorities to revise the conditions of the agreement.
Approval by the EU
CFO Axel Hamann expressed his satisfaction that the European Commission has officially approved the proposed changes to the financing rules and confirmed that they comply with EU state aid legislation.
Thanks to this approval, the German government can swiftly apply the updated rules and adjust the existing financing commitments, thereby safeguarding the financial viability of the project.
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