Inauguration date set for Sweden's largest electrolyzer for fossil-free hydrogen production

– Heating processes in the steel industry have historically relied heavily on fossil fuels, this is a barrier for Ovako's ambitious goal of achieving zero emissions in its operations. The Nordic region has unique resources in the form of fossil-free energy sources, and we have embraced this in our innovative hydrogen project. Its launch in September will mark a new chapter in Sweden’s history of steel making. With our new hydrogen plant in Hofors, we will become the first in the world to heat steel with fossil-free hydrogen prior to rolling. This groundbreaking initiative holds immense potential for substantial reductions in global emissions, and the level of interest we have received from international partners is remarkable, says Marcus Hedblom, CEO and Group President of Ovako. 

The electrolyzer plant is currently being installed at Ovako's facility in Hofors, and the work is expected to be completed in early autumn 2023. The 20-megawatt (MW) plant will generate 3,880 cubic meters of fossil-free hydrogen per hour. In addition to heating steel, the fossil-free hydrogen can be used to fuel trucks powered by fuel cells. Furthermore, the excess heat generated can be used for district heating in nearby communities.  

Through strategic collaborations with partners like the Volvo Group, Hitachi Energy, H2 Green Steel, and Nel Hydrogen, Ovako is committed to ensuring that the impact of this facility will make a difference from day one. The initiative is supported by the Swedish Energy Agency, where the common goal is to establish cross-industry use of fossil-free hydrogen, increase knowledge about the possibilities of the fuel, and achieve cost-effective production.   

– I would like to emphasize the importance of collaborative efforts that transcend industry boundaries and prioritize solutions yielding substantial and immediate climate benefits. Since 2015, we have reduced our CO2 emissions by 57 percent, and now we will be the first steel company to demonstrate that it is possible to heat steel with fossil-free hydrogen prior to rolling. Together with our other initiatives, this moves us even closer to zero emissions in our steel production, says Marcus Hedblom. 

The plan is to use local hydrogen production in all of Ovako's rolling mills by 2030, provided there is a good supply of fossil-free electricity.  

The development of the fossil-free hydrogen plant is carried out with support from the Swedish Energy Agency and the European Union.  

_{About Ovako’s fossil-free hydrogen plant}  

The technology solution provides fossil-free hydrogen and oxygen for use in high-temperature processes in steel production, effectively replacing liquid petroleum gas (LPG). With a greater demand for oxygen than hydrogen in the steel industry, there are also excellent opportunities for cost-effective utilization of fossil-free hydrogen in other areas, such as fuel cell-powered transportation for sustainable transport. The flexible nature of this technology allows for versatile applications, which can contribute to enhanced grid stability, thereby facilitating a higher share of renewable energy sources. In addition, the residual heat generated can be utilized in district heating networks. This investment of approximately 180 million SEK (EUR 16 million) is supported by the Swedish Energy Agency through “Industriklivet”.

Ovako develops clean, high quality engineering steel for customers in the bearing, transport, and manufacturing industries. Our steel enables products that are lightweight, resilient and climate smart. Our sustainability ambition is high. Our production is carbon neutral since January 2022 and is based on recycled steel and fossil-free electricity. Ovako has around 2,900 employees in more than 30 countries and sales of approximately EUR 1000 million. We are a subsidiary of Sanyo Special Steel and a member of Nippon Steel Corporation, one of the largest steel producers in the world. For more information, please visit us at www.ovako.com, www.sanyo-steel.co.jp and www.nipponsteel.com.