“SSAB remains focused on technical exchanges with the DOE and collaboration with other potential partners related to the hydrogen, clean energy, and equipment supply chains,” according to the statement.

The steelmaker didn’t address questions about why it withdrew from negotiations or what might come next for the Perry County project.

The development arrives at an uncertain time for the nascent clean hydrogen market and the DOE’s Industrial Demonstrations Program itself.

Hy Stor recently encountered setbacks in bringing its so-called Mississippi Clean Hydrogen Hub online. Along with producing hydrogen from renewables, the company planned to store H₂ in underground salt caverns throughout the region.

Last fall, Hy Stor abruptly canceled a preliminary supply deal to reserve more than 1 gigawatt in electrolyzer capacity. Electrolyzers are an essential component of making hydrogen from renewables. At the time, Hy Stor said it didn’t make sense for the company to make its upcoming capacity reservation payments given the “difficult market environment” for carbon-free hydrogen.

“The green hydrogen market has faced a series of headwinds that have resulted in it taking longer than anticipated to bring our lead project to fruition,” Eric Reidel of Connor, Clark & Lunn Infrastructure, which is Hy Stor’s controlling shareholder, told Canary Media in early October.

Meanwhile, the Industrial Demonstrations Program and other federal clean energy initiatives face major unknowns with President-elect Donald Trump set to step into office next week.

Trump has called for rescinding unspent money allocated by the Inflation Reduction Act — the biggest funding source for the industrial decarbonization grants. Any dollars that haven’t already been distributed or legally obligated by the time Trump takes office on January 20 could potentially be pulled back, experts say.

Still, at least some funding for green steel projects is already out the door.

Ohio-based Cleveland-Cliffs has received $9.5 million of what could be up to $500 million from DOE to build its own novel project in Middletown, Ohio. Like SSAB, the manufacturer also plans to build a DRI ironmaking plant, but with a key difference. Initially, the facility will run on fossil gas, then gradually mix in hydrogen when — or if — supplies become available.

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