ThyssenKrupp Steel Delays Hydrogen Plant Commissioning to 2029

ThyssenKrupp Steel Europe’s ambitious, €3 billion hydrogen-based steel production plant will not come online until 2029, a two-year delay attributed to complications in the engineering phase, the company disclosed in a recent statement. The postponement represents a setback for the company’s decarbonization efforts and Germany’s broader push for “green steel” production.

While the delay is significant, ThyssenKrupp maintains that construction is proceeding, with key elements like the direct reduction plant tower and foundations for smelting furnaces currently underway. The company frames the delay as a normal adjustment for a project of this scale, noting that adapting execution timelines is not uncommon. Crucially, the project is now benefiting from revised funding rules that allow for a higher proportion of natural gas to be mixed with hydrogen during initial production, a concession acknowledging current limitations in the availability and cost of pure green hydrogen.

The shift toward allowing natural gas, while deviating from the ideal of fully “green” steel, is viewed as a pragmatic step. ThyssenKrupp estimates that even with natural gas integration, CO2 emissions will be more than halved compared to traditional coal-based steel production. The delay, however, underscores the challenges of building out the necessary hydrogen infrastructure—including production capacity, transport networks, and import routes—which are currently lagging behind expectations. The rising cost of green hydrogen, exceeding initial projections, is also a contributing factor.

The project, which receives up to €2 billion in state funding, remains a core element of ThyssenKrupp’s strategy to reduce its carbon footprint. However, the revised timeline and reliance on a transitional fuel source highlight the practical hurdles in achieving large-scale decarbonization within the steel industry and the evolving expectations around the pace of green hydrogen adoption.