Sweden's largest electrolyser project inaugurated to produce hydrogen for green steelmaking
Ovako’s facility in Hofors will use renewable H2 for industrial heat rather than direct iron reduction, in bid to decarbonise downstream steel processing
Swedish steel firm Ovako has today inaugurated a 20MW electrolysis system, the largest to start operations in the country yet, at its mill in the municipality of Hofors, 220km northwest of Stockholm.
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Renewable hydrogen for steel is gaining traction in Sweden.
But unlike other initiatives, Ovako plans to burn its green hydrogen for industrial heat, rather than use it to extract iron from ore in a process known as direct iron reduction.
This is likely because the Swedish firm focuses primarily on recycling scrap steel, which accounts for 97% of its production.
However, the heat needed for rolling the steel into a finished product downstream is still generated by firing fossil gas. Ovako anticipates that switching to green hydrogen to fire these processes would reduce its core emissions by a further 50% or more.
Overall, the project cost SKr180m ($16m), of which SKr71m was supported by the Swedish Energy Agency.
The firm also plans to extend hydrogen production and use to all units where steel is rolled by 2030, “provided there is good access to fossil-free electricity to power the electrolysis process”.