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Hydrogen is likely to be more expensive than expected

Currently known major hydrogen consumption and production regions in Germany are to be connected with the adopted hydrogen core network. This aims to link important locations such as large industrial centers, storage facilities, power plants, and import corridors. Main hydrogen infrastructures, which are to be operational by 2032, will form part of the core network. The Federal Network Agency approved the construction application in October 2024. Measures with a pipeline length of approximately 9,040 kilometers (approx. 5617 miles) are planned. About 60 percent of these projects are based on the conversion of existing natural gas pipelines to hydrogen. The investment costs are estimated at 18.9 billion euros (1.084.400.000 USD). As of the current status, Thyssenkrupp Steel is expected to be connected to four major hydrogen import ports by 2030. The locations of Brunsbüttel, Wilhelmshaven, Stade, and Hamburg have already been designated. Incidentally, a 100 percent hydrogen operation will require approximately 143,000 tons of hydrogen per year for the first direct reduction plant. Initial tenders for hydrogen sourcing are currently ongoing, but their evaluation has not yet been completed. However, it is expected that procurement prices will be significantly higher than currently assumed.

That is needed for a sustainable steel market

However, specific frameworks are required for the success of this transformation—particularly competitive energy prices at the international level, fair international competition, and leading European steel markets with low-CO₂ products. But this alone is not sufficient, as industrial policy must also change. This means that an "Industrial Deal" must be added to the Green Deal to strengthen Europe's competitiveness in the global market and ensure high-quality jobs in the region. This also includes fair competition conditions. In terms of trade policy, EU imports from steel overcapacity countries should be much more strongly combated.

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More sustainable steel products from recycled scrap

ArcelorMittal is considered the second largest steel manufacturer worldwide. At the four locations in Hamburg, Eisenhüttenstadt, Duisburg, and Bremen, this corporation is also actively advancing the transformation and decarbonization of the steel industry in Germany. The blast furnaces of the steel company in Eisenhüttenstadt and Bremen are also to be replaced by hydrogen plants in the future. "The transformation requires enormous investments by the company, as well as policy support and access to affordable renewable energy," says communications director Arne Langner. This is because steel products have different CO₂ footprints depending on the type of production, the energy used, and the raw materials used. There is currently no net-zero steel either—that is, steel that, on balance, produces zero emissions by not emitting more than can be saved through reduction measures. However, according to Langner, a foundation for this is already being laid today. Steel with reduced emissions is marketed by ArcelorMittal under the name "XCarb - recycled and renewably produced." Here, the recycling of scrap steel is the focus of the efforts. Production takes place in an electric arc furnace with up to 100 percent recycled material using electricity from renewable sources.