HERNE, Germany, Sept 16 (Reuters) - Germany's Thyssenkrupp (TKAG.DE) , opens new tab must demonstrate its commitment to a planned 3 billion euro ($3.3 billion) green steel site, the country's Economy Minister Robert Habeck said, days after the company flagged the project's cost may increase.

"It is very important that Thyssenkrupp clearly underlines that it wants to stick with the project," Habeck told Reuters on the sidelines of a visit to North Rhine-Westphalia. "If this doesn't happen, it will be difficult for the entire site," Habeck said, without elaborating.

Thyssenkrupp Steel Europe (TKSE), in which Czech billionaire Daniel Kretinsky owns a 20% stake, last week said the planned direct reduction site in Duisburg could cost more than initially expected.

Two people familiar with the situation, speaking on condition of anonymity, have said the increase could be an additional low-to-mid triple digit million euro sum.

In a statement on Monday, Thyssenkrupp said it was assessing the situation and reiterated it had been informed of the risk of a cost increase.

"We currently assume that the direct reduction plant can be realised under the given framework conditions," the company said in emailed comments.

Steel production is a big contributor to carbon emissions and the industry has been trying to shift to green production that does not rely on fossil fuel.

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https://www.reuters.com/markets/commodities/thyssenkrupp-must-renew-commitment-33-bln-green-steel-project-habeck-says-2024-09-16/