Currently, civil engineering, steel structure and basic structural design have been completed by more than half, and equipment installation and system commissioning are advancing simultaneously. The project is scheduled to officially start production in late 2026. As one of Europe's largest benchmark projects for green steel transformation, the plant will reduce carbon dioxide emissions by 3.5 million tons annually after commissioning, providing an important practical sample for the low-carbon transformation of the global steel industry.
Core Project Overview: Investment Exceeds €2 Billion, Supported by Multiple Policy Funds
It is understood that this DRI plant is the core carrier of Thyssenkrupp's "tkH₂ Steel" green transformation strategy, with a total investment exceeding €2 billion. Among them, the contract value paid to SMS Group alone for engineering design, equipment delivery and construction reaches €1.8 billion, which is also the largest single order in SMS Group's history.
In terms of funding support, the project has obtained a total of approximately €2 billion in financial subsidies from the German federal government and the state government of North Rhine-Westphalia. Among them, the state of North Rhine-Westphalia has invested €700 million, which is earmarked to support the research and development of hydrogen-based processes and the construction of the plant's infrastructure. This has cleared financial obstacles for the accelerated implementation of the project and also reflects the German government's key support for the low-carbon transformation of the steel industry.
Technical Route: Hydrogen-based Reduction + Flexible Adaptation, Leading the Innovation of Green Steel Processes
In terms of core technology selection, the plant adopts the world-leading MIDREX Flex hydrogen-based direct reduction technology, paired with two innovative smelting furnaces. It is the world's first industrial project that combines 100% hydrogen-based direct reduction with new smelting equipment, completely breaking through the high-carbon bottleneck of traditional blast furnace coal-based ironmaking.
Compared with traditional processes, the project uses green hydrogen as the core reducing agent, and the smelting furnaces are driven by renewable electricity. The production process can significantly reduce carbon emissions, while retaining the downstream steelmaking and deep processing processes unchanged, ensuring that the quality of low-carbon steel products is consistent with that of traditional steel, balancing environmental protection and practicality. Considering the current global green hydrogen supply situation, the project can flexibly switch the ratio of hydrogen to natural gas in the initial stage, and will gradually transition to a 100% green hydrogen reduction mode as the regional green hydrogen supply capacity improves, adapting to the development rhythm of the global hydrogen energy industry.
In terms of supporting facilities, SMS Group is simultaneously responsible for the construction of auxiliary systems such as slag treatment and wastewater recycling, realizing the resource utilization of production waste and zero-pollution discharge of wastewater, and ensuring the efficient and environmentally friendly operation of the entire production process.
Construction Progress: Key Milestones Steadily Advanced, Official Production in Late 2026
From the perspective of the project promotion timeline, since the official launch of preliminary preparation work in March 2023, Thyssenkrupp has successfully completed important milestones such as the demonstration of key technical schemes, the procurement of core equipment, and site leveling, laying a solid foundation for subsequent construction.
In January 2026, Thyssenkrupp officially disclosed that the civil engineering and steel structure foundation design of the plant have been completed by more than 50%, and core production equipment has been successively delivered to the site and installation work has started. It is expected to enter the system joint commissioning stage in the second half of 2026 and officially start production at the end of the year. After commissioning, the plant can stably produce 2.5 million tons of DRI annually, which can be converted into about 2.3 million tons of molten iron. It will gradually replace one traditional blast furnace at the Duisburg site in phases, gradually reducing the proportion of coal-based ironmaking capacity and promoting the continuous reduction of overall carbon emissions at the site.
Multi-dimensional Value: Parallel Emission Reduction and Industrial Driving, Empowering Regional Economic Transformation
Significant Low-carbon Benefits, Supporting the Achievement of Carbon Neutrality Goals
According to calculations by professional institutions, the plant will reduce carbon dioxide emissions by 3.5 million tons annually after commissioning. This emission reduction is equivalent to 2% of the annual total carbon emissions of the state of North Rhine-Westphalia and about 17.5% of the existing annual carbon emissions (20 million tons) of Thyssenkrupp's Duisburg site. The commissioning of this project will provide core support for Thyssenkrupp to achieve its strategic goals of "reducing emissions by 30% by 2030 and reaching climate neutrality by 2045".
Driving the Development of Hydrogen Energy Industry and Promoting the Upgrade of Cross-border Cooperation
The huge demand for green hydrogen from the project will directly accelerate the construction of regional hydrogen energy infrastructure. It is expected that starting from 2029, the plant will consume about 143,000 tons of green hydrogen annually, and the electricity required to produce this green hydrogen is equivalent to the annual power generation of 500 wind turbines. This demand will attract hydrogen energy enterprises from European countries such as Norway and Germany to increase investment and layout, accelerate the landing of cross-border hydrogen trade cooperation, and inject new vitality into the development of Europe's hydrogen economy.
Focusing on High-end Markets, Driving Employment and Regional Transformation
In terms of market layout, after commissioning, the plant will focus on high-end manufacturing customers such as automobiles and machinery, providing them with high-quality low-carbon steel products. Earlier, Thyssenkrupp has signed a cooperation memorandum with Mercedes-Benz Group, agreeing that starting from the second half of 2026, new Mercedes-Benz models will gradually adopt low-carbon steel produced by this plant, helping the automotive industry achieve the goal of reducing the carbon footprint of the entire vehicle.
In addition, during the construction and operation of the project, it will directly drive the growth of high-end manufacturing jobs in the Ruhr region, consolidate Duisburg's core position as Europe's steel and industrial logistics center, and inject new vitality into the transformation of traditional industrial areas to green and low-carbon.
Multi-party Statements: Setting a Benchmark for Industry Transformation and Practicing the Concept of Sustainable Development
Miguel López, CEO of Thyssenkrupp Group, said: "The accelerated construction of the Duisburg DRI plant demonstrates our firm determination to promote the green transformation of the steel industry. With the dual support of government subsidies and technological innovation, we will become a pioneer in global climate-neutral steel production and lay an important foundation for the development of Europe's hydrogen economy."
Hendrik Wüst, Minister-President of the state of North Rhine-Westphalia, pointed out that this project is a key measure for regional industrial transformation. It can not only effectively mitigate the impact of climate change, but also ensure the sustainable development of the industrial economy, achieving a win-win situation of environmental and economic benefits, and taking an important step for Germany to become a carbon-neutral industrialized country.
Industry Interpretation: Responding to Carbon Cost Pressure, Providing a Replicable Transformation Path
Industry analysts believe that with the full implementation of the EU Carbon Border Adjustment Mechanism (CBAM), the global steel industry is facing increasingly severe carbon cost pressure, and low-carbonization has become the core competitiveness of the industry. The commissioning of Thyssenkrupp's Duisburg green steel project will not only greatly enhance its competitiveness in the high-end low-carbon steel market, but also provide a replicable and promotable low-carbon transformation path for steel enterprises in Europe and even the world, promoting the coordinated carbon reduction of the upstream and downstream of the steel industry chain and accelerating the green upgrading process of the global steel industry.
