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.
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.
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.
“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.
“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.”
($1 = 0.8681 euros)
(Reporting by Christoph SteitzEditing by Ludwig Burger)
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