Thyssenkrupp Steel acknowledges potential cost increases for the construction of its green steel plant in Duisburg. Ulrich Greiner Pachter, General Representative and project manager for the Direct Reduction (DRI) plant, stated in an interview with the Westdeutsche Allgemeine Zeitung that cost fluctuations are inherent to projects of this scale. He emphasized that all parties involved are aware of this possibility.
The construction activities, encompassing the work of Thyssenkrupp Steel and the contracted equipment supplier SMS Group from Mönchengladbach, represent an order volume exceeding one billion euros. Greiner Pachter acknowledged that unforeseen issues often arise during large-scale construction projects. The company is incorporating a risk buffer to account for potential cost overruns.
Beyond the construction phase, potential increases in operating costs pose a significant challenge. Greiner Pachter specifically highlighted energy costs and the availability of affordable green hydrogen as critical factors impacting long-term viability. The availability and pricing of green hydrogen will be essential for the plant’s operational success.
The German federal government and the state of North Rhine-Westphalia have committed up to two billion euros in public funds to support the project, with Thyssenkrupp initially aiming to contribute one billion euros as its own financial contribution.
