Thyssenkrupp reviews plan to wean itself off fossil fuels

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Subscribe to enjoy similar stories. Thyssenkrupp said it was reviewing plans to wean its steelmaking operations off fossil fuels due to high costs, making it the latest company to rethink energy-transition pledges. The assessment comes as the steel business of the German industrial group undergoes a broader review of its business plan.

Thyssenkrupp has been trying to turn the fortunes of its steel business around while investing in making its operations more sustainable, an effort that has been complicated by rising costs and tough market conditions. Executives at Thyssenkrupp Steel Europe recently warned the supervisory board of the business that plans to produce fossil fuel-free steel at its site in Duisburg, Germany, could cost more than envisioned. “The situation is currently being reviewed based on this information," the company said.

The statement followed a weekend report by German newspaper Handelsblatt that cast doubt on whether the company would follow through on its plan. Shares in the company fell by more than 4% in afternoon trading in Europe. Thyssenkrupp’s review of its plans comes at a time when companies across a range of industries are rethinking efforts to reduce the carbon footprints of their operations or the products they sell.

Energy major Shell in July said it would pause construction of a biofuel facility in Rotterdam, which was set to be one of Europe’s largest, to curb costs amid weakened global demand for the fuel. In August, Danish shipping giant Maersk said it would increase its fleet of ships running on liquefied natural gas. Meanwhile, Swedish carmaker Volvo Car last month abandoned a target to sell only fully electric vehicles by the end of the decade.