Thyssenkrupp is holding advanced talks with Germany and the European Union to adapt the financing framework for its planned new green steel plant in Duisburg to changing economic conditions.
Around two-thirds of the EUR 3 billion (USD 3.5 billion) financing allocated for the direct reduction plant is being provided by the German government and the company’s home state.
The financing was initially subject to the condition that the plant would use hydrogen. However, as hydrogen will not be used initially, changing this condition has been under consideration.
Thyssenkrupp has held lengthy discussions with the EU and Germany on modifying the financing framework to ensure that the financing can continue to flow even though hydrogen will not be used initially.
Change in EU financing rules approved
Chief Financial Officer Axel Hamann said they were pleased that the European Commission had approved the planned change to the existing financing rules and confirmed that the regulations are fully compatible with EU state aid law.
Hamann stated that this development means the Federal Government can implement the change immediately and accordingly adjust the financing decisions in line with the new rules.
The new financing rules are expected to enter into force later.
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