Lhyfe and Ugitech, a subsidiary of Swiss Steel Group, have signed a memorandum of understanding (MoU) for the establishment of a green hydrogen production unit at Ugitech’s Ugine site in Savoie, France.
This partnership marks a significant milestone in Europe’s efforts to transition towards green hydrogen in the steel sector. By replacing natural gas with green hydrogen in thermoprocessing equipment, Ugitech aims to reduce its carbon footprint and contribute to a more sustainable industrial landscape. The project aligns with Swiss Steel Group’s roadmap for decarbonizing its business and underscores the growing importance of renewable energy in heavy industries.
Lhyfe plans to install a green hydrogen production unit with a capacity of up to twelve tonnes per day, powered by a maximum electrolysis capacity of 30 MW, at the Ugitech plant. This green hydrogen will primarily be used within Ugitech’s operations, replacing natural gas in various processes such as burners, reheating furnaces, and heat treatment furnaces. Additionally, Lhyfe will supply hydrogen to local mobility and industry players, facilitating the development of the regional hydrogen ecosystem, particularly in anticipation of the 2030 Winter Olympics.
As the collaboration enters the feasibility study phase, the implementation of the project will be contingent upon various factors, including the conclusions of the study, regulatory approvals, and financial investment decisions. The success of this initiative will serve as a testament to the viability and scalability of green hydrogen solutions in heavy industries.
The collaboration between Lhyfe and Ugitech represents a proactive step towards decarbonizing steel production and fostering sustainable mobility in the region. While the project is still in its early stages, its success could serve as a blueprint for similar initiatives across Europe. As the energy landscape continues to evolve, partnerships like these underscore the pivotal role of green hydrogen in driving decarbonization efforts and shaping a more sustainable future for heavy industries.
