Thyssenkrupp green steel doubts put Germany's hydrogen network at risk – grid operator

Doubts over Thyssenkrupp Steel Europe’s (TKSE) strategy to decarbonise using hydrogen puts Germany’s plans for the construction of a hydrogen core grid at risk, gas grid operator Open Grid Europe (OGE) has warned. “TKSE Europe is supposed to be one of the top buyers of hydrogen. A loss of demand from TKSE will have a noticeable impact on the hydrogen core network,” OGE head Thomas Hüwener told business daily Handelsblatt.

Earlier this month, TKSE said it was reviewing its decarbonisation strategy. According to media reports, the steel group is considering a halt to a 3 billion euro hydrogen-based direct reduction project that forms the core of its decarbonisation strategy. “It cannot be denied that the ramp-up of the hydrogen economy is currently not going smoothly. A few dark clouds have gathered,” Hüwener said, also with a view to the recent cancellation of Norwegian low-carbon hydrogen projects.

Germany's proposed hydrogen core network is a pipeline grid connecting the focal points of hydrogen production, consumption and storage. Due to be completed in 2032, the network is meant to include a total of 9,666 kilometres of lines, around 60 percent of which are already used to transport gas. Germany’s gas transmission system operators applied for the network to the Federal Network Agency (BNetzA) in July.

Steel producers are expected to significantly contribute to the development of Germany's “hydrogen economy”. The federal government is funding TKSE and other steel companies to the tune of 7 billion euros to help transform steel production to hydrogen-based processes, according to Handelsblatt.