“This agreement underscores the two companies’ joint commitment to sustainability and climate protection, marking a further milestone in their long-standing partnership,” the companies said in a statement. 

thyssenkrupp’s DRI plant is to be commissioned in 2027. It is intended to operate with hydrogen and green electricity, but during the ramp-up phase, the plant will use natural gas as the reducing agent, before the process is switched successively to hydrogen.

“Signing this memorandum of understanding marks an important step on our path to decarbonizing key industrial processes in Germany. Our long-standing partnership with Volkswagen Group demonstrates that, alongside our technical development work, we can also collaborate in making great strides toward a sustainable future,” said Dennis Grimm, thyssenkrupp Steel’s executive board spokesman.