The European Commission is expected to approve 2 billion euros ($2.2 billion) worth of German state subsidies for Thyssenkrupp's (TKAG.DE) planned green steel plant in Duisburg, a German economy ministry source said on Tuesday.
Approval is expected within the coming weeks, the source said, adding agreement had been reached on how the project is eligible for state funding.
Thyssenkrupp declined to comment.
The news comes a day ahead of protests planned by workers over what they fear could be lower than anticipated government subsidies for the plant. Economy Minister Robert Habeck is due to speak to workers who have expressed doubts over whether the funds will materialise.
Thyssenkrupp needs financial support to fund the so-called direct reduction iron (DRI) facility, which is key to lowering emissions in steelmaking, one of the most polluting industrial production techniques.
The DRI site is due to start operation at the end of 2026 and forms the centre of Thyssenkrupp's effort to decarbonise production at its steel division, which is currently looking for a strategic partner.
($1 = 0.9268 euros)
