HYBRIT's pilot project for H2 gas storage has now been completed and reported to the Swedish Energy Agency. The results show that it is technically possible to store fossil-free H2 gas for producing fossil-free iron and steel on an industrial scale. This can also reduce the variable operating costs of H2 production by up to 40%.
The HYBRIT initiative was launched in 2016 by owners SSAB, LKAB and Vattenfall with the aim of developing the world's first fossil-free, ore-based iron- and steelmaking using fossil-free electricity and H2 gas. The project for the production of fossil-free sponge iron for steel production (DR pilot) is now being followed up with the results of the pilot for fossil-free H2 gas production and storage.
The project has successfully designed and constructed a 100 m3 H2 storage facility based on steel-lined rock cavern technology in Svartöberget adjacent to the DR pilot for sponge iron production in Luleå, Sweden. The tests now completed show that the technology works to support a large-scale H2 user, and that savings of about 25%─40% of the variable operating costs of H2 gas production could be reached. The pilot storage facility has undergone accelerated mechanical testing equivalent to approximately 50 years of operation, and the safety, functionality and performance of the facility have been successfully demonstrated.
“The pilot project has been highly successful and has given us the results we hoped for. We have shown that it is possible to use this technology to increase the flexibility of the electricity system and that it is a safe design that lasts overtime. H2 gas storage is an important piece of the puzzle to electrify industrial processes while increasing the amount of weather-dependent power. With the results and experiences gained from the pilot project, the technology is now ready to be scaled up,” said Mikael Nordlander, Director, Industry Decarbonization at Vattenfall's Industrial Partnerships.
Future fossil-free industrial processes using H2 gas from fossil-free electricity instead of fossil fuels will mean that industry will be more dependent on the electricity system. In this case, it is crucial to secure the supply of H2. The purpose of a H2 storage facility is primarily to be able to adjust H2 production to electricity market fluctuations. H2 gas production costs are optimized by producing and storing surplus H2 gas when electricity prices are low and reducing production and using the stored H2 gas when prices are high.
“H2 is an important part of LKAB's future strategy and journey towards carbon dioxide-free products and processes. We have yet to make any decisions on H2 gas storage, but the successful results from the pilot give us good conditions when we review the needs and opportunities for storage in conjunction with our planned sponge iron production facilities,” said Jenny Greberg, Vice President of Technology at LKAB.
“The results from the HYBRIT pilot project show that large-scale storage of fossil-free H2 is technically possible and economically beneficial. With these innovative technologies, we can build strong fossil-free value chains with the potential of drastically reducing the climate footprint of the iron and steel industry,” said Martin Pei, CTO at SSAB.
The steel industry currently accounts for around 7% of global carbon dioxide emissions. The HYBRIT technology will enable SSAB to reduce Sweden’s and Finland’s carbon dioxide emissions by 10% and 7% respectively. The Swedish Energy Agency has co-financed 22% of the H2 storage project, with the remainder having been financed by the owner companies.
“It feels great that HYBRIT now summarizes another successful pilot program, this time for underground H2 gas storage. HYBRIT has focused on building competence and creating important experiences for an industrial application of the technology. The pilot facility tests in Luleå have shown that H2 gas storage with LRC technology works. And with the knowledge and experience generated by the team, it is now possible to take the next step,” said Gunilla Hyllander, General Manager at Hybrit Development AB.
Facts: