French firm Verso Energy will supply at least 6,000 t/yr of renewable hydrogen to German steelmaker Stahl-Holding-Saar (SHS) for 10 years from 2029, under a binding agreement signed on 5 September.
The deal is the first publicly announced result of SHS's March 2024 tender to procure 50,000 t/yr of "locally produced" renewable hydrogen to decarbonise its operations.
Hydrogen will be produced at Verso's 300MW electrolyser project in Carling, in France's Moselle department, and delivered to SHS's Dillingen plant in Germany via the MosaHYc pipeline, which links northeast France and western Germany.
Verso's project in Carling will be developed in three phases, each producing around 17,000 t/yr of hydrogen. The first phase is expected in 2027–28, with the final phase planned for 2030.
The MosaHYc pipeline is being developed by NaTran, formerly GRTgaz, on the French side and Creos in Germany.
SHS plans to use up to 120,000 t/yr of renewable hydrogen in future to produce green steel. It will deploy a direct reduction iron (DRI) plant and an electric arc furnace at Dillingen to cut emissions.
The firm has received around €2.6bn ($3bn) in support from the German federal and state governments to decarbonise its Dillingen and Volklingen sites. Total planned investment amounts to €4.6bn, SHS said.
Other German steelmakers have also announced plans to use renewable hydrogen, but progress has varied. ArcelorMittal has paused its plans, while Thyssenkrupp expects to rely on natural gas longer than planned at its under-construction DRI site in Duisburg.
