Stahl-Holding-Saar starts tender process for locally produced green hydrogen

SHS - Stahl-Holding-Saar (SHS) has announced the official launch of a closed tender process for the procurement of up to 50,000 tonnes of locally produced green hydrogen. This step represents a first milestone for the major decarbonisation project Power4Steel. SHS is thus pushing ahead with the strategic expansion of a regional, cross-border hydrogen economy.

The steel companies Saarstahl AG, Aktien-Gesellschaft der Dillinger Hüttenwerke (Dillinger) and the joint subsidiary ROGESA Roheisengesellschaft Saar mbH (ROGESA) have high hydrogen requirements for the successful implementation of their decarbonisation project. The use of hydrogen is necessary to reduce CO2 emissions generated in the steel industry's processes "The tendering process marks a significant step on our path to more sustainable steel production," explains Jonathan Weber, Chief Transformation Officer at SHS. "As a steel industry, we are sending out a clear signal and creating a secure framework for the development of the local hydrogen economy. We want to offer our customers the first CO2-reduced steel from Saarland from 2027/28."

The Power4Steel project envisages a significant reduction in CO2 emissions with the aim of climate-friendly production. From 2027/28, SHS - Stahl-Holding-Saar and its subsidiaries, Dillinger, Saarstahl and ROGESA, plan to produce up to 3.5 million tonnes of so-called green steel per year. In order to reduce CO2 emissions by 55 per cent by 2030 in line with the EU's "Fit for 55" target, up to 70 per cent of production will be converted to be climate-friendly as a first step. The construction of a direct reduction plant at the Dillingen site and one electric arc furnace (EAF) each in Dillingen and Völklingen are planned for this purpose. Hydrogen is to be used for the production of green steel as soon as the new plants are commissioned. By 2030, demand will increase to up to 50,000 tonnes per year and in the long term to 120,000-150,000 tonnes per year.

The tender for the regional hydrogen supply is aimed at identifying hydrogen suppliers along MosaHYc, the hydrogen island network in the Grande Région, who will supply SHS with green hydrogen for use in the direct reduction plant from 2027. It should be finalised by the end of the year.

Source: SHS, Photo: Pixabay

Translated with DeepL.com (free version)