From water to hydrogen: inside ovako’s steelmaking breakthrough
“Welcome to Europe’s largest electrolyzers right now! Quite different from the steel plant, right? Not as dusty or noisy!”
Anders Lugnet beams as he opens the door to the large electrolyzer hall at Ovako’s new hydrogen plant. Inside, eight massive electrolyzers are at work, splitting water into hydrogen and oxygen. The oxygen is used in several processes in steel production, while the hydrogen is used to heat steel before rolling—a world-first innovation introduced at Ovako in Hofors.
“Of the 19 megawatts of electricity we use, we currently generate 12 megawatts of hydrogen to heat the steel. But the overall efficiency is even higher because we also recover heat, which is distributed to households throughout Hofors and the surrounding area,” explains Anders Lugnet, the engineer who first came up with the idea for Ovako’s hydrogen initiative.
“The potential is enormous. If more steel plants and other industries around the world adopt this solution, it could save 300 million tons of carbon dioxide annually.”
A Long Journey
Anders has spent his career working on heating and heat treatment, constantly looking for ways to make the steel industry more energy-efficient and environmentally friendly. He’s spent countless hours in front of oily, smoky, and smelly furnaces, pondering the next step forward.
“Using hydrogen for heating is as clean as it gets—the only emission is pure water. But it’s been a long journey from dirty heavy oil to the solution we have today,” Anders explains.
He had been considering hydrogen for nearly 20 years, but until 2015, electrolyzers large enough for a steel plant simply didn’t exist, making it only a theoretical possibility.
“When large electrolyzers finally came onto the market, I started crunching the numbers. One day, I realized, ‘Wow, this might actually work!’ That was 15 years ago now,” he says.
Open to Ideas
After refining his calculations and thoroughly testing his concept, Anders presented the idea to Ovako’s management team, who were immediately excited.
“If you have a good idea, Ovako is a great place to be. It’s very open to new ideas. But of course, you need to get management on board and make them as passionate about the project as you are. What I proposed wasn’t a small investment; it was going to cost hundreds of millions,” he says.
“If you have a good idea, Ovako is a great place to be. It’s very open to new ideas.”
Huge Potential
Ovako conducted its first lab tests using hydrogen to heat steel for rolling in 2019. A year later, they tested the process in the actual furnaces—with great success. By fall 2023, the hydrogen plant was officially opened, enabling Ovako to reduce its carbon dioxide emissions by 20,000 tons annually. And this is just the beginning, with plans for more electrolyzers in Hofors and hydrogen production at Ovako’s other facilities.
Looking out over the electrolyzer hall, Anders can’t help but smile.
“It’s amazing to be part of this—to see it become a reality! It’s a small step for humanity, but so was Neil Armstrong’s step on the moon. And the potential here is enormous. If more steel plants and other industries adopt this solution, it could save 300 million tons of carbon dioxide annually. That feels incredible!”
Byline:
Text: Johanna Paues Darlington / Splay One
Photo: Richard Paulsson/Ovako
Fun facts about Anders
- Name: Anders Lugnet
- Role: Technical Specialist in Energy and Furnace Technology at Ovako
- Education: Mechanical Engineer
- Residence: In the countryside outside Finsta, near Norrtälje
- Hobbies: Sailing, tinkering in the garage, forestry work, and various home renovations
- Best work experience so far: Working with skilled people on technically challenging projects—that’s the most rewarding part.
