German steelmaker thyssenkrupp Steel and RWE, a German multi-national energy company, have signed a long-term Power Purchase Agreement (PPA) to supply green electricity to the first direct reduction plant at the steelmaker's Duisburg location with electrically powered melters.
The 10-year contract provides for a delivery volume of 112 GWh per year. Electricity will be generated at RWE's Nordsee Kaskasi offshore wind farm, 35 km off the coast of Heligoland. This means offshore wind energy will make a significant contribution to supplying the energy for the tkH2Steel transformation project in future, and will help achieve climate goals. According to thyssenkrupp Steel, additional contracts with green electricity producers will be required to fully supply the system with green electricity.
According to thyssenkrupp Steel, primary steel production will be climate-friendly and the electric hot metal will be produced using renewable energy. In conjunction with the plant's two electrically operated melters, the direct reduction plant will be integrated into Europe's biggest iron and steel plant as a technologically new plant combination. The direct reduction plant, which is 100% hydrogen-capable, produces direct reduced iron (DRI), referred to as sponge iron, from iron ore. The DRI is then melted into hot metal using CO2-free electricity in two identical melters. With a capacity of 2.3Mt (metric tonnes) of regeneratively produced hot metal per year, up to 3.5Mt (metric tonnes) of CO2 emissions can be avoided annually. This, claims thyssenkrupp Steel, is not only an innovative approach but also a significant step on the path towards sustainable and carbon-neutral steel production.
"Renewable energy is a core element in our transformation strategy alongside the use of regeneratively produced hydrogen – a separate public call for tenders is currently underway for this."
Dr Arnd Köfler, chief technology officer at thyssenkrupp Steel.
According to thyssenkrupp Steel, the partnership with RWE is an important building block in the company's energy strategy, as part of the tkH2Steel transformation project, with the goal of sustainable steelmaking. This strategy envisages successively increasing the requirement for electricity generated from renewable sources, and thus paving the way for carbon-neutral production.
"Renewable energy is a core element in our transformation strategy alongside the use of regeneratively produced hydrogen – a separate public call for tenders is currently underway for this," explains Dr Arnd Köfler, chief technology officer at thyssenkrupp Steel. "The co-operation with RWE is the first step towards meeting the renewable electricity requirements in the tkH2Steel project. By concluding this PPA, we are taking one step further on the path to carbon-neutral production."
Ulf Kerstin, chief commercial officer of RWE Supply & Trading, also welcomes the co-operation: "We are delighted that we can support thyssenkrupp Steel in decarbonizing steel production. With our Growing Green investment and growth campaign launched in 2021, we are further expanding our green electricity portfolio in Germany and making a significant contribution to the success of the energy transition. Kaskasi is our sixth wind farm in the German North Sea and the next farms are already under development. The North Sea cluster will create a further 1.6 gigawatts of offshore wind power in the coming years. "
The signing of the green electricity PPA between thyssenkrupp Steel and RWE emphasizes how both companies not only depend on but are also committed to a sustainable and future-oriented energy supply in industry.
"With our Growing Green investment and growth campaign launched in 2021, we are further expanding our green electricity portfolio in Germany and making a significant contribution to the success of the energy transition."
Ulf Kerstin, chief commercial officer of RWE Supply & Trading.
Ulf Kerstin, chief commercial officer of RWE Supply & Trading, also welcomes the co-operation: "We are delighted that we can support thyssenkrupp Steel in decarbonizing steel production. With our Growing Green investment and growth campaign, launched in 2021, we are further expanding our green electricity portfolio in Germany and making a significant contribution to the success of the energy transition. Kaskasi is our sixth wind farm in the German North Sea and the next farms are already under development. The North Sea cluster will create a further 1.6 gW of offshore wind power in the coming years. "
The signing of the green electricity PPA between thyssenkrupp Steel and RWE emphasizes how both companies not only depend on but are committed to a sustainable and future-oriented energy supply in industry.