Verso Energy to Supply Renewable Hydrogen to Stahl Holding Saar for Decarbonization Initiative
Verso Energy has signed a ten-year agreement to supply at least 6,000 tons of renewable hydrogen annually to German steelmaker Stahl Holding Saar beginning in 2029. This deal marks the first outcome of SHS's tender for 50,000 tons of renewable hydrogen aimed at reducing carbon emissions. Hydrogen will be produced at Verso's electrolyser project in Carling, France, and transported to SHS's Dillingen plant via the Mosahyc pipeline. SHS plans to enhance its green steel production, supported by substantial government investments, while other German steelmakers continue to explore hydrogen utilization.
Theia Market Signal Identification - AI AssistedOn September 5, Verso Energy formalized a significant ten-year agreement to provide German steelmaker Stahl Holding Saar (SHS) with a minimum of 6,000 tons of renewable hydrogen per year, commencing in 2029. This contract stands as the inaugural public outcome of SHS's March 2024 tender, which seeks to source 50,000 tons of locally produced renewable hydrogen to facilitate the decarbonization of its operations.
Renewable hydrogen will be generated at Verso's ambitious 300 MW electrolyser project located in Carling, nestled in the Moselle department of France. The hydrogen will then be delivered to SHS's Dillingen facility in Germany through the Mosahyc pipeline, an infrastructure project spearheaded by Natran on the French side and Creos in Germany.
The Carling project is slated to unfold in three phases, each expected to yield approximately 17,000 tons of hydrogen annually. The first phase is projected to commence between 2027 and 2028, with the entire project anticipated to reach completion by 2030.
SHS has articulated plans to utilize up to 120,000 tons of renewable hydrogen in the future to produce green steel. This will involve deploying a direct reduction iron (DRI) plant alongside an electric arc furnace at its Dillingen site, aimed at significantly reducing emissions. The company has secured approximately €2.6 billion ($3 billion) in support from both federal and state governments to facilitate the decarbonization efforts at its Dillingen and Völklingen sites, with a total planned investment reaching €4.6 billion.
While SHS is advancing its renewable hydrogen strategy, other German steelmakers are also exploring similar avenues, albeit with varying degrees of progress. ArcelorMittal has recently paused its hydrogen initiatives, while Thyssenkrupp anticipates a longer reliance on natural gas than initially expected at its DRI site under construction in Duisburg. The landscape of hydrogen utilization in the steel industry remains dynamic, with each player navigating its unique path toward sustainability.
Comments