Thyssenkrupp Materials Trading has entered into a landmark memorandum of understanding (MoU) with Australian developer Progressive Green Solutions (PGS) to purchase the entire output of the Mid-West Green Iron project in Western Australia. The deal, though not yet legally binding, represents a significant step towards building one of the largest integrated green hydrogen-to-iron production chains in the world.

Under the MoU, Thyssenkrupp would secure 100% of the project’s green iron products, which include green iron pellets and hot-briquetted iron (HBI). Both commodities will be manufactured using green hydrogen produced on-site from a massive 1.4GW electrolyser facility. This move could help transform Western Australia into a critical hub for green iron production and exports, while advancing Thyssenkrupp’s ambitions in sustainable steelmaking and materials trading.

Electrolyser technology for the project will be supplied by Thyssenkrupp Nucera, the company’s majority-owned subsidiary (50.2%), which has already established itself as a leading player in large-scale water electrolysis. The deployment of Nucera’s systems will not only demonstrate German technology at scale in the global hydrogen economy but also mark a major milestone in Australia’s effort to become a green metals powerhouse.

Western Australia has been positioning itself as a key player in the emerging green hydrogen and green metals sector, leveraging its abundant renewable energy resources and mineral wealth. The Mid-West Green Iron project exemplifies this strategy by integrating hydrogen production directly into ironmaking, replacing coal-based reduction methods with a zero-carbon alternative.

By focusing on both iron pellets and HBI, the project aims to cater to a broad market: domestic buyers seeking to decarbonise local steel supply chains, and international customers — particularly in Europe and Asia — who face increasing pressure to reduce carbon intensity in construction, automotive, and manufacturing sectors.

For Thyssenkrupp, this agreement underscores its broader push to decarbonise its materials business and secure long-term supplies of low-carbon inputs. Europe’s steel industry is currently undergoing a major transformation as EU climate policies tighten and industrial customers demand greener products. Partnering with Australian developers provides Thyssenkrupp with a first-mover advantage in securing reliable green feedstocks at scale.

Source:

https://fuelcellsworks.com/2025/09/17/green-investment/thyssenkrupp-signs-mou-to-buy-all-green-iron-from-australia-s-1-4gw-hydrogen-project#google_vignette