Nel Hydrogen Electrolyser, part of Nel ASA, has initiated a collaboration on a fossil-free hydrogen plant in Hofors, Sweden, together with Ovavko, Volvo, Hitachi ABB and H2 Green Steel. The conversion to green hydrogen in the producction process will reduce CO2 emissions from the plant by 50% from the current level with the possibility of future development of hydrogen infrastructure for transport.

Jon André Løkke, CEO of Nel, says: “We are very excited to enter into this shared initiative to jointly develop fossil-free alternatives for the steel industry. Green hydrogen has the characteristics to significantly reduce CO2 emissions from steel rolling and milling, and this will be the first project in the world to heat steel with hydrogen prior to rolling. The target would be for Nel to supply the project with our industry leading electrolyser equipment, and we look forward to working with our partners to further develop fossil free steel production – a potential huge market for the application of green hydrogen.”

The initiative aims to create future hydrogen infrastructure in the transport sector. The investment of approx. 180 million Swedish kroner is supported by the Swedish Energy Agency via the Industriklivet initiative and will create significant benefits for the wider society from several perspectives.

The plant can be used flexibly and can therefore support the stability of the electricity grid, which in turn will allow more use of renewable energy sources. In addition, it will be a step towards developing a hydrogen infrastructure for the transport sector with locally produces fossil-free hydrogen for fuel cell vehicles.

Read Nel’s press releasehere.