ThyssenKrupp call for tenders for H2 supply to Direct Reduction Iron (DRI) plant
Source: thyssenkrupp Steel – [thyssenkrupp Steel is intensively pushing ahead with developing the hydrogen economy] – [2024] – [https://www.thyssenkrupp.com/en/newsroom/press-releases/pressdetailpage/thyssenkrupp-steel-is-intensively-pushing-ahead-with-developing-the-hydrogen-economy:-call-for-tenders-for-supplying-hydrogen-to-the-first-direct-reduction-plant-at-the-duisburg-location-251160]
Tenders for renewable and low-carbon hydrogen in Europe present a set of criteria, requirements, and steps specific to each case, making the process a complex and demanding task. A recent example is the tender launched by ThyssenKrupp for the supply of H2 to its Direct Reduction Iron (DRI) plant in Duisburg, Germany. At Hinicio, we have the knowledge and experience to guide you through the complexities of this tender and increase your chances of success.
To ensure a reliable and efficient supply of RFNBO/Low-Carbon hydrogen to ThyssenKrupp, suppliers will need to optimize their delivery strategy as supply risks are put on suppliers. Delivery and supply chain optimization includes assessing the most effective transportation mode, establishing a resilient supply chain with robust contingency measures, and securing appropriate intermediate storage and conversion facilities.
Additionally, bidders will need to make sure that their product is compliant with the specifications of the tender, translating into a strict fulfillment of the requirements set out by the EU regulations driving RFNBO/Low Carbon hydrogen (and derivatives) up-take. In other words, pre-certification is a requirement. Our extensive understanding of the regulatory requirements for renewable and low carbon H2 production (RFNBO), market dynamics and best practices in bid preparation makes us your ideal partner.
What is this tender about?
- Objective: Supplying TKSE’s DRI plant with Low-Carbon or RFNBO H2.
- Specifications: For RFNBO hydrogen, according to RED (II/III) and the EU Delegated Acts (renewability and GHG emissions criteria). For Low-Carbon H2, according to the EU Gas Package.
- Volumes: 5.6 TWhHHV in the form of hydrogen, equivalent to 142 ktpa.
- Delivery schedule: Starting with a 4.1 TWhHHV in 2028 and gradually increasing.
- Delivery place and method: At TKSE’s plant in Duisburg, by pipeline using the German Kernnetz or an alternative pipeline.
- Delivery molecule: Hydrogen. Suppliers offering ammonia as a carrier will have to guarantee supply of elementary hydrogen via pipeline (integrating cracking into their scope).
By maximizing the project’s technoeconomic efficiency and thoroughly understanding the competitive landscape, we can significantly increase your chances of success. Here’s how we can leverage our previous experience to your advantage.
- Training: Understand the nuances of the auction and its criteria and prepare thoroughly through a series of workshops and Q&A sessions. This may include an in-depth analysis of EU policy and regulation and Member State implementation.
- Assess compliance with RED II/III criteria: Ensuring regulatory compliance with RED II Delegated Acts / Gas Package requirements to provide certainty to off-takers: from concept to fully certifiable product once the project is operational.
- Determine the optimal delivery method and back-up: Selecting the best delivery route for H2 to TKSE’s DRI plant, including considering supply chain disruptions and infrastructure realization risks and identifying mitigation measures.
- Techno-economic project optimization: Improve your project definition, set-up and business model to meet specific regulatory and auction requirements effectively.
- Strategic bidding: Understanding the competition and Levelized Cost of Hydrogen (LCOH) optimization, using Hinicio’s inhouse modelling tool ANDREA combined with in-depth market intelligence to balance the odds of winning against the risks of too aggressive bidding.
- Overall coordination and content (documentation) development support towards submitting your auction bid.
Our commitment to hydrogen since 2006 has enabled us to develop a proven track record of success in helping our client. Contact us to discuss your specific needs and how we can help you: info@hinicio.com.
