Jacobs (NYSE: J) has been selected as the Program and Construction Management (PMCM) partner for thyssenkrupp Steel's ambitious $2.5 billion initiative to decarbonize its steel mill in Duisburg, Germany. This project, touted as one of the largest industrial decarbonization efforts globally, addresses Europe's largest steel mill.
The groundbreaking endeavor involves the adoption of a new process utilizing green hydrogen for iron reduction, replacing conventional coal-powered blast furnaces with hydrogen-powered electric smelters. Expected to commence operations by the end of 2026, the facility aims to produce an impressive 2.5 million metric tons of direct reduced iron (DRI) annually, significantly reducing carbon emissions by up to 3.5 million metric tons per year.
Jacobs Executive Vice President Patrick Hill remarked, "Companies like thyssenkrupp and Jacobs are leading the way in global climate transformation with a focus on decarbonizing the industrial sector. This major project, managed by an integrated German and international team, signifies a crucial step in reshaping the industry and supply chain in Europe and beyond."
thyssenkrupp Steel Technical Project Leader for Direct Reduction, Christian Kuhn, emphasized the importance of Jacobs' role, stating, "The decision to commission Jacobs with the construction site organization is an important step towards the successful implementation of our planned construction project."
As the PMCM partner, Jacobs' responsibilities encompass overall coordination and management of engineering services, assembly, and logistics; construction management and supporting contract management; assembly management of the Engineering Procurement Construction (EPC) contractor for the direct reduction plant; and interface management across the construction and assembly teams.
thyssenkrupp Steel Europe AG, Germany's largest steel manufacturer, envisions complete climate neutrality in steel production by 2045. The company aims to achieve this through the construction of hydrogen-based direct reduction plants in tandem with innovative melting units. The initial plant is slated to commence operations in Duisburg in 2026, with a production target of five million metric tons of low-CO2 steel by 2030.
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