Thyssenkrupp Secures Deal to Advance €3 Billion Green Steel Project

Thyssenkrupp, a German conglomerate, is close to finalizing a deal with Brussels that would ensure its €3 billion green steel site in Germany can proceed despite changed circumstances. The company secured €2 billion in public funds for the direct reduction plant in 2023, but those funds were contingent on the use of hydrogen produced using renewable energy.

However, due to the unavailability and high cost of green hydrogen in Europe, Thyssenkrupp has been negotiating with Brussels to adjust the funding framework. The new agreement would allow the company to use natural gas as an alternative fuel source, which is not CO2 neutral but would enable the project to move forward.

The European Commission's approval of the amended funding rules came on Thursday, and shares in Thyssenkrupp rose as much as 7.5% to their highest level since November 2018. The company also raised its lower end of its profit outlook for 2026, citing strong performance from its steel, marine, and materials trading units.

Thyssenkrupp's finance chief, Axel Hamann, welcomed the development, saying that it would allow the Federal Government to implement the amendment promptly and adjust the funding decisions accordingly. The company is undergoing a major restructuring effort, spinning off all of its individual divisions in an attempt to simplify and improve performance.