German steelmaker Thyssenkrupp has agreed to sell a 20 percent stake in its European subsidiary ThyssenKrupp Steel to Czech Republic-based energy company EP Corporate Group (EPCG), according to a statement released by the former.
Accordingly, the transaction is expected to be completed in the current year, though both parties have agreed not to announce its value. In the meantime, Thyssenkrupp stated that they are also discussing the option for the acquisition of another 30 percent by EPCG, aiming to create a 50:50 joint venture.
As part of the deal, EPCG will ensure a sufficient supply of hydrogen and green electricity as well as the provision of other energy commodities. Currently, having a generation capacity of around 22 gigawatts in Europe, EPCG also plans to build an eight-gigawatt renewable energy plant by 2030 in Germany. If necessary, EPCG will be able to supply additional quantities of green electricity, hydrogen, and initially also natural gas to steel production in Duisburg.
According to Thyssenkrupp, this move will further contribute to the decarbonization of the steel industry.
