Thyssenkrupp Steel acknowledges the possibility of cost increases associated with the construction of its “green steel” production facility in Duisburg. Ulrich Greiner Pachter, the company’s General Representative and Project Manager for the Direct Reduction (DRI) plant, stated in an interview with the “Westdeutsche Allgemeine Zeitung” that cost overruns are a possibility inherent in projects of this substantial scale. He emphasized that all stakeholders are aware of this potential.
The construction efforts, encompassing both Thyssenkrupp’s work and that of the contracted equipment supplier, SMS Group of Mönchengladbach, represent an order volume exceeding one billion euros. While acknowledging that unforeseen challenges are typical for such large-scale undertakings, the company has factored a “risk buffer” into its planning to account for possible additional expenses.
Beyond the construction phase, Greiner Pachter highlighted concerns regarding ongoing operational costs. He identified energy costs and the availability of affordable green hydrogen as the most significant long-term hurdles. Securing sufficient quantities of this key input at competitive prices will be crucial for the facility’s economic viability.
The German federal government and the state of North Rhine-Westphalia have pledged up to two billion euros in public funding for the project. Thyssenkrupp had previously indicated its intention to contribute one billion euros as its own financial contribution.