Germany’s Thyssenkrupp Getting New Low Carbon Steel Plant

The energy issues facing Europe aren’t stopping Germany’s drive towards greener industry, at least in the long term. Last Wednesday, the country announced it would provide steelmaker Thyssenkrupp with hundreds of millions in funding to support lower carbon output.

Though the actual amount has yet to be determined, estimates put the funding in the hundreds of millions of euros. It’s estimated that the planned direct reduction plant will cost more than $2 billion. When completed, it will be the largest of its kind in Germany and will run on hydrogen rather than coal.

Experts currently estimate the finished plant will produce up to 2.5 million tons of direct-reduced iron. This should avoid some 3.5 million tons of carbon dioxide emissions.

Steel Prices Halt Slide for Now

Global steel prices enjoyed a moderate reversal today after a particularly rocky September. Many hang the bounce on expert announcements that China’s steel sector profitability should not deteriorate further. In fact, according to Global Rating Agency Fitch, we can “expect production to recover from September as construction enters peak season.”

This, combined with the Biden Administration’s renewed focus on infrastructure, seems to have put steel investors in a more confident place. Though the index has a long way to go, experts were happy to see a brief reprieve from the downhill slide.