The SHS - Stahl-Holding-Saar Group (SHS Group) with its shareholdings Dillinger (Aktien-Gesellschaft der Dillinger Hüttenwerke), Saarstahl (Saarstahl Aktiengesellschaft) and ROGESA (ROGESA Roheisen- und Rohstoffgesellschaft Saar mbH), have concluded a long-term contract with energy company Verso Energy for the annual supply and purchase of at least 6,000 tons of 'green' hydrogen. With the conclusion of the Franco-German contract, the Power4Steel steel decarbonization project has cleared another hurdle on the path to climatefriendly steel production. Verso Energy and the SHS Group have thus given the green light to the regional, cross-border hydrogen economy.
ROGESA launched a closed tender process in March 2024 for procurement of regionally produced 'green' hydrogen. As a result of this regular tender, Verso Energy and ROGESA have agreed on an annual supply of at least 6,000 tons of hydrogen over a period of ten years starting in 2029.
Verso Energy will supply Saarland’s steel industry with hydrogen certified as Renewable Fuels of Non-Biological Origin (RFNBO). This certification guarantees that the hydrogen was produced using renewable electricity. Using these initial quantities of hydrogen, along with steel scrap and a new plant technology consisting of a direct reduction plant and electric arc furnace at the Dillingen site and an electric arc furnace at the Völklingen site, the SHS Group can achieve the targeted reduction of its carbon emissions by up to 55 percent by the early 2030s, in line with funding requirements.
Verso Energy will produce the hydrogen with the Carling Hydrogen Next Generation (CarlHYng) project in Carling (France). In a first step, Verso Energy is planning to build an electrolyzer representing an investment of over 100M€, which will be powered by electricity from renewable sources. The hydrogen produced is fed into the Moselle-Saar Hydrogen Conversion (mosaHYc) pipeline network, transported to the Dillingen steel plant, and used there for the production of CO2-reduced steel.
The SHS Group laid crucial groundwork for the strategic expansion of the regional hydrogen economy when it commissioned the mosaHYc pipeline network in April 2024. It is being built by network operators Creos Deutschland Wasserstoff GmbH and NaTran Deutschland SA (formerly GRTgaz SA). The hydrogen required for 'green' production in industrial plants near the border will be transported to the region via the Franco-German pipeline network. The SHS Group plans to use up to 120,000 tons of hydrogen per year in the final expansion stage, ultimately making it the largest customer in the region.
Click here for full announcement
Source: Verso Energy
