Tender process for regional hydrogen supply started.
SHS – Stahl-Holding-Saar (SHS) announces the official start of a closed tender process to procure up to 50,000 t of locally produced green hydrogen. This step represents a first milestone for the large decarbonization project Power4Steel. The SHS is thus further driving forward the strategic expansion of a regional, cross-border hydrogen economy.
In order to successfully implement their decarbonization project, the steel companies Saarstahl AG, Aktien-Gesellschaft der Dillinger Hüttenwerke (Dillinger) and their joint subsidiary ROGESA Roheisengesellschaft Saar mbH (ROGESA) have a high need for hydrogen. The use of hydrogen is necessary to reduce CO2 emissions that arise in the steel industry’s processes. “The tender process marks an important step on our path to more sustainable steel production,” explains Jonathan Weber, Head of Transformation at SHS “We as the steel industry are sending 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 are scheduled to produce up to 3.5 million tons of so-called green steel annually. To ensure that 55 percent of CO2 can be saved by 2030 in line with the EU’s “Fit for 55” target, up to 70 percent of production will be converted to be climate-friendly in a first step. For this purpose, the construction of a direct reduction plant at the Dillingen site and an electric arc furnace (EAF) are planned in Dillingen and Völklingen. As soon as the new plants go into operation, hydrogen will be used to produce green steel. By 2030, demand will increase to up to 50,000 t per year and in the future to 120,000-150,000 t per year.
The tender for regional hydrogen supply is aimed at identifying hydrogen suppliers along MosaHYc, the hydrogen island network in the Grande Région, who will supply the SHS with green hydrogen for use in the direct reduction plant from 2027. It should be completed by the end of the year.
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