Nel Hydrogen Electrolyzer has entered into a collaboration for a fossil-free hydrogen facility in Hofors, Sweden, together with partners Ovako, Volvo, Hitachi ABB, and H2 Green Steel. The conversion to green hydrogen in the production process will reduce CO2-emissions from the facility by 50% from current levels with possibilities for future development of hydrogen infrastructure for transportation.

The initiative will focus on developing a fossil-free steel production facility, with the intention of taking the first step towards creating a future hydrogen infrastructure for the transport sector. The investment of approximately SEK 180 million is supported by the Swedish Energy Agency via the Industriklivet initiative and will create significant benefits for wider society from multiple perspectives.

The conversion to hydrogen will enable reduction of CO2 emissions for steel production in Hofors by 50%. The plant can be used flexibly and therefore support the stability of the electrical grid, which in turn will permit more use of renewable energy sources. Additionally, it will be a step in the direction of developing a hydrogen infrastructure for the transportation sector, with locally produced fossil-free hydrogen for fuel cell vehicle trucks.

"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," said Jon André Løkke, Chief Executive Officer, Nel. "The target would be for Nel to supply the project with our industry leading electrolyzer 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."