Thyssenkrupp: Carbon2Chem project receives 50€ million grant
by David Fleschen

The Carbon2Chem® initiative, a collaborative project led by thyssenkrupp in partnership with the Max Planck Institute for Chemical Energy Conversion (MPI CEC) and the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT, has officially entered its third phase. Originally launched in 2016, the research aims to explore how blast furnace gases from steel production can be converted into valuable chemical feedstocks for applications such as fuels, plastics, and fertilizers. The project, supported by funding from the German Ministry of Education and Research, has made significant advancements in sustainable industrial practices and continues to contribute to the decarbonization of the industry.
The newly initiated phase will focus on applying and verifying solutions developed in previous research, adapting gas usage in direct reduction processes within the steel sector, and conducting comprehensive studies on methanol and hydrogen production. To support these efforts, Dr. Karl Eugen Huthmacher, State Secretary at the Ministry of Education and Research, has announced a €50 million grant extending through 2028.
Milestones Achieved in the Second Phase
During the second phase, researchers demonstrated the technical feasibility of methanol production at varying CO/CO2 ratios. Additionally, findings confirmed that large-scale hydrogen storage in underground caverns is a viable solution, particularly in the northern Ruhr region. The research also identified additional carbon sources, such as lime reduction, thermal waste treatment, and direct reduction, as potential contributors to methanol production.
Carolin Nadilo, CFO of thyssenkrupp Decarbon Technologies, emphasized the project’s impact: "The results of the second phase demonstrate the vast potential of Carbon2Chem® for industrial decarbonization. This initiative highlights our commitment to reducing industrial CO2 emissions worldwide through innovative technologies and accelerating the green transformation. We appreciate the German Ministry’s continued financial support for this forward-looking project."
Dr. Karl Eugen Huthmacher reinforced the importance of the initiative, stating: "Carbon2Chem® exemplifies how research can make industrial processes more climate-friendly. The progress achieved so far is bringing us significantly closer to a CO2 circular economy, particularly in the steel, chemical, and energy sectors."
New Challenges and Project Expansion in the Third Phase
Since the project’s inception, changing economic and regulatory conditions have influenced the industrial transformation landscape. The third phase will address these evolving challenges by verifying application-based solutions, adapting gas usage for direct reduction in steel production, and further studying methanol and hydrogen production and storage. A new generation of electrolyzers will also be developed, and production efforts will expand to include sustainable aviation fuels.
Professor Dr. Walter Leitner, Director of MPI CEC, highlighted the broader implications of the project: "The transition to a sustainable energy system demands innovative solutions that go beyond individual sectors. Carbon2Chem® serves as a model for successful collaboration between basic research, applied research, and industrial applications."
The initiative has also attracted additional partners for this phase, including BASF, EY Consulting GmbH, Germany’s State Distance-Learning University in Hagen, and the University of Duisburg-Essen. Professor Dr. Görge Deerberg, Project Director of Carbon2Chem® and Director for Transfer at Fraunhofer UMSICHT, expressed optimism about the expanded collaboration: "The new partners will strengthen our work, enabling us to advance Carbon2Chem® and prepare the technology for widespread implementation. With these new focus areas and contributors, we are entering a promising stage that will make a significant impact on sustainable industrial transformation."
Source and Photo: Thyssenkrupp