In order to supply the first direct reduction plant at the Duisburg site with electrically operated smelters with green electricity, thyssenkrupp Steel and RWE have signed a long-term green electricity supply agreement (Power Purchase Agreement, PPA).
The contract runs for 10 years and provides for a delivery volume of approximately 110 GWh per year. The electricity is generated in the RWE Nordsee offshore wind farm Kaskasi, 35 kilometers off the coast of Heligoland. In the future, offshore wind energy will make a significant contribution to the energy supply of the tkH2Steel transformation project and help to achieve the climate goals. In order to supply the system completely with green electricity, further contracts with green electricity producers are necessary.
Sustainable primary steel production
Together with the two electrically operated melters, the direct reduction plant will be integrated into the largest European steelworks as a technologically new plant combination. The 100 percent hydrogen-capable direct reduction plant produces reduced iron (DRI), so-called sponge iron, directly from iron ores. In the two identical melters, the DRI is melted into pig iron using green electricity. With a capacity of 2.3 million tons of regeneratively produced pig iron per year, up to 3.5 million tons of CO2 emissions can be avoided annually. This innovative approach is a significant step towards sustainable and climate-neutral steel production.
“In addition to the use of renewable hydrogen – a separate public tender for this is currently underway – renewable energy is a core point of our transformation strategy. The collaboration with RWE is the start of meeting the need for renewable electricity for the tkH2Steel project. With the conclusion of this PPA, we are taking the path to climate-neutral production one step further,” said Dr. Arnd Köfler, Chief Technology Officer at thyssenkrupp Steel.
Green electricity as a foundation
The partnership with RWE is an important component of the company's energy strategy. This strategy envisages gradually increasing the demand for electricity generated from renewable sources and thus setting the course for climate-neutral production.
“We are pleased to be able to support thyssenkrupp Steel in the decarbonization of steel production. With our Growing Green investment and growth offensive launched in 2021, we are continuing to expand our green electricity portfolio in Germany and are making a significant contribution to the success of the energy transition. Kaskasi is our sixth wind farm in the German North Sea, the next parks are already in development. The North Sea cluster will create a further 1.6 gigawatts of offshore wind power in the coming years,” explains Ulf Kerstin, Chief Commercial Officer of RWE Supply & Trading.
The signing of the green electricity PPA between thyssenkrupp Steel and RWE underlines the need and commitment of both companies for a sustainable and future-oriented energy supply in industry.
