The EP Corporate Group (EPCG) owned by Czech citizen Daniel Křetínský is acquiring 20 percent of shares of the steel business of thyssenkrupp, along with an option to buy a further 30 percent of shares.
According to thyssenkrupp, the goal of the process, which is scheduled to take several years, is the fully independent status of thyssenkrupp Steel Europe as a business.
“Together, we want to create a high-performing, profitable and forward-looking steel company which lowers the cost of decarbonisation to a more competitive level and thus accelerates the green transformation of the steel industry on its way to carbon neutrality”, is how thyssenkrupp AG’s CEO Miguel López explains the transaction. According to thyssenkrupp, the transaction is planned to be finalised within the current business year, if approved by the responsible authorities and the Supervisory Board of thyssenkrupp AG. The goal is to form an equal partnership within a 50/50 joint venture.
There have long been speculations about Křetínský entering the thyssenkrupp steel business. At the end of last November, the industrial corporation had already published negotiations with Křetínský concerning his entry into the steel business. A strong energy partner like EPCG, according to thyssenkrupp, is essential for transforming the steel industry to reach carbon neutrality. As a strategic partner of thyssenkrupp Steel, EPCB is expected to add its competence to ensure sufficient supply of energy in the form of hydrogen, green electricity and the provision of other raw materials for energy production.
The reliable provision of sufficient quantities of green electricity at competitive prices is seen as critical for the success of transforming the steel industry. The share of energy costs for producing one slab of raw steel previously amounted to about ten percent of total costs, but, according to thyssenkrupp, will amount to up to 50 percent for neutral, hydrogen-based processes.
EPCG, which operates in nine European markets, contributes extensive knowledge of the industry as a trader, provider and supplier of energy. In 2023, the EPCG power plants together produced 72.5 terawatt hours (TWh) of net electricity. This makes EPCG one of the leading energy providers in Europe. EPCG currently has an energy production capacity of about 22 gigawatts (GW) of installed net performance and thereby significantly contributes to a reliable energy supply in Europe.
At the same time, EPCG is undertaking important steps within the sector of renewable energies. In Germany alone, the company aims to expand its production capacities for renewable energy to more than 8 gigawatts of installed performance by 2030. The main emphasis is on wind power, solar power and biomass. For example, EPCG has already started construction on the largest floating solar energy plant in Germany, on the Cottbus Eastern Lake (Cottbuser Ostsee) in the region of Lusatia.
Additional quantities of green electricity, hydrogen and at present also natural gas could be supplied as needed to steel production in Duisburg through energy trading by EPCG. According to thyssenkrupp, project management and the implementation of large-scale projects for the green transformation are also feasible areas for both companies to interface. For instance, in Germany, EPCG operates and develops large solutions for energy storage as well as hydrogen-driven gas power plants to compensate for peak loads or to maintain a reliable supply of energy in view of fluctuating electricity production through wind and solar power.
Source: thyssenkrupp
