Nel Hydrogen Electrolyser, a division of Nel ASA, has formed a collaboration with Ovako, Volvo, Hitachi ABB, and H2 Green Steel to build a fossil-free hydrogen facility in Hofors, Sweden.
The conversion to green hydrogen in the manufacturing process will result in a 50% reduction in CO2-emissions from the facility, with the possibility of future development of hydrogen infrastructure for transportation.
“We are very excited to enter into this shared initiative to jointly develop fossil-free alternatives for the steel industry. Green hydrogen has the characteristics to significantly reduce CO2 emissions from steel rolling and milling, and this will be the first project in the world to heat steel with hydrogen prior to rolling. The target would be for Nel to supply the project with our industry leading electrolyser equipment, and we look forward to working with our partners to further develop fossil free steel production – a potential huge market for the application of green hydrogen.” says Jon André Løkke, Chief Executive Officer, Nel.
The effort will focus on the development of a fossil-free steel manufacturing facility as a first step toward constructing a future hydrogen infrastructure for the transportation industry. The approximately SEK 180 million investment is sponsored by the Swedish Energy Agency through the Industriklivet program and will have major societal benefits from a variety of viewpoints.
”We will work collaboratively together to make this project a success, based on the joint learnings we will standardize the overall solution and ensure that this can be replicated in different locations all across Europe”, adds Jon André Løkke, CEO of Nel Hydrogen.
The conversion to hydrogen will permit a 50% reduction in CO2 emissions from steel manufacturing at Hofors. The plant is adaptable and hence contributes to the stability of the electrical grid, allowing for further use of renewable energy sources. Additionally, it will pave the way for the development of a hydrogen infrastructure for transportation, using locally produced fossil-free hydrogen for fuel cell car trucks.