German steel giant Thyssenkrupp Steel Europe has sent an open letter to the Federal Ministry for Economic Affairs and Climate Protection, requesting subsidies of around EUR 2 billion for the proposed green steel project. The letter, apparently sent with the help of a works council, claims that without subsidies the project will be halted.
The company has faced a series of challenges, including failed partnerships, mismanagement, layoffs and calls for government support. Over the years, the company has borrowed heavily and relied heavily on subsidies and state aid.
The sale of the steel division has been a slow process and there are doubts about its success because of Germany's labour laws, pension savings and the influence of workers' councils and unions. Critics argue that the company lacks transparency and a clear vision for the future.
The proposed project, which aims for environmentally neutral production, currently lacks the necessary green hydrogen and renewable energy sources. Instead, it will rely on natural gas and natural gas-derived hydrogen, which produce more CO2 emissions.
The financing details of the project have not yet been made public. There are concerns that the project is a form of greenwashing and there are doubts as to whether the German government will continue to fund the project. The Ministry of Economics and Climate Protection, led by Minister Robert Habeck, is reportedly awaiting a decision from Brussels and may be reassessing the viability of the project. Critics argue that it is time to end the subsidies and protectionism associated with the project.
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