SSAB pulls out of talks for $500m in subsidies for US green hydrogen-based steel project
The Swedish steelmaker had planned to trial the “Hybrit” process using H2 produced in Mississippi
Swedish steel firm SSAB has pulled out of talks with the US Department of Energy (DOE) for subsidies of up to $500m for a project that would have used green hydrogen to produce direct-reduced iron (DRI).
The DOE had in March last year shortlisted SSAB for support under the Industrial Demonstrations Program, which would cover up to 50% of project costs.
SSAB had planned to trial its Hybrit process, already demonstrated in Sweden, which completely cuts out fossil fuels from the steelmaking process.
Originally, the Swedish firm planned to use green hydrogen produced in Mississippi by developer Hy Stor Energy to directly reduce iron ore into sponge iron, which would then be processed into steel via an electric arc furnace at its steelworks in Montpelier, Iowa.
However, cracks in the project started to appear back in October, when Hy Stor Energy cancelled its capacity reservation for more than 1GW of alkaline electrolysers from Norwegian firm Nel.
“SSAB remains focused on technical exchanges with the DOE and collaboration with other potential partners related to the hydrogen, clean energy, and equipment supply chains.”
This all raises questions about the status of both the project and Hy Stor, whose website has been deactivated.