German SHS Group promotes the Power4Steel hydrogen supply project
According to media reports, the German SHS Group (Stahl-Holding-Saar), together with its subsidiaries Dillinger, Saarstahl and ROGESA, has taken an important step in the field of steel decarbonization by signing a long-term contract with the French energy company Verso Energy. According to the agreement, SHS Group will receive at least 6,000 tons of certified environmentally friendly hydrogen per year.
By advancing its Power4Steel project, SHS Group eventually plans to use up to 120,000 tons of hydrogen per year in the final expansion phase, positioning itself as the largest consumer of hydrogen in the region.
Hydrogen supplies will begin in 2029.
In March 2024, SHS Group initiated a closed tender for the supply of environmentally friendly hydrogen from regional production, as previously reported by SteelOrbis. Verso Energy has won the tender and will supply hydrogen for ten years, starting in 2029, in the amount of at least 6,000 tons per year.
Hydrogen will be certified as a renewable fuel of non-biological origin (RFNBO), which guarantees its production exclusively using renewable electricity.
Impact on steel production and reduction of carbon emissions
Through the use of hydrogen, recycled steel scrap, and advanced technologies, including a new direct reduction plant and electric arc furnaces in Dillingen and Felklingen, SHS Group plans to reduce carbon emissions by up to 55% by the early 2030s, meeting EU decarbonization financing requirements.
Verso Energy's investments in electrolysis cell infrastructure
To support this project, Verso Energy will build an electrolysis cell worth more than 100 million euros, powered exclusively by renewable energy sources. The resulting hydrogen will be supplied via the Mosel-Saarland hydrogen conversion pipeline (mosaHYc) to the SHS Group plant in Dillingen, where it will be used in the smelting of low-CO2 steel.
Steelorbis.com