Thyssenkrupp Advances Funding Adjustments for €3B Green Steel Plant
Thyssenkrupp's Funding Framework and Recent Developments
Background on the Duisburg Green Steel Plant
FRANKFURT, Aug 13 (Reuters) - Thyssenkrupp is in advanced talks to adjust the funding framework for its new green steel plant in Duisburg to reflect the changed economic environment, its finance chief said.
Funding Sources and Initial Conditions
Government and State Contributions
Two thirds of the €3 billion ($3.5 billion) in funding for Thyssenkrupp's direct reduction plant comes from the German government and the group's home state, initially contingent on the use of hydrogen, a premise that has since become unrealistic.
Challenges with Hydrogen Requirement
To ensure the money can still flow even though hydrogen will not be used initially, Thyssenkrupp had been in lengthy talks with the EU and Germany to amend the funding framework.
Approval and Implications of Amended Funding Rules
European Commission's Decision
"We are very pleased that the European Commission has approved the planned amendment to the funding rules currently in force and has already confirmed that they are fully compliant with EU state aid law," Axel Hamann said.
Next Steps for Implementation
Federal Government Actions
"This means that the Federal Government can implement this amendment promptly and, consequently, adjust the funding decisions accordingly. The new funding rules will then come into effect."
Additional Information
($1 = 0.8681 euros)
(Reporting by Christoph SteitzEditing by Ludwig Burger)
