From 2029, Verso will supply at least 6,000 tonnes of green hydrogen from its Carling Hydrogen Next Generation (CarlHYng) project in France.
The green hydrogen will supply SHS Group’s Saarland steelmakers, including Dillinger’s heavy plate production, Saarstahl’s long products and the joint venture ROGESA. Each company is transitioning under the government-backed Power4Steel decarbonisation programme.
Verso plans to flow the hydrogen through the cross-border mosaHYc pipeline into the Dillingen steel plant, before being distributed across SHS’ facilities. The volumes will be used alongside scrap metal in new direct reduction and electric arc furnaces to reduce CO2 emissions.
The energy firm specified that the green hydrogen will be developed to meet the EU Renewable Fuels of Non-Biological Origin (RFNBO) criteria. The electrolyser plant is currently at the development stage.
The mosaHYc pipeline, however, was commissioned last year, meaning the transport infrastructure is in place ahead of the plant construction.
“For Saarstahl and Dillinger, there is only one direction: forward,” said Stefan Rauber, SHS Managing Director. “The availability of renewable hydrogen is an important criterion for the success of our Power4Steel decarbonisation project.
“[The group] will offer customers a high-quality portfolio of CO2-reduced steel products.”
Xavier Caïtucoli, Verso Energy’s President, said the contract and CarlHYng project “confirm the company’s trajectory,” as it aims to become a European leader in the production of low-carbon fuels.
Beyond CarlHYng, Verso is advancing four hydrogen-based e-SAF projects in France, with additional plans for one in the US and two in Finland.
While the first contract with Verso Energy secures 6,000 tonnes per year from 2029, SHS Group plans to consume up to 120,000 tonnes per year once its new steelmaking plants are operating.
France’s electricity concerns should not derail local hydrogen-based SAF ambitions: Verso Energy
France’s electricity supply concerns should not divert focus from domestic green hydrogen-based sustainable aviation fuel (e-SAF) production in favour of imports.
That’s according to Antoine Huard, CEO of French e-fuel producer Verso Energy, who told H2 View that while policymakers generally support domestic e-SAF production, some are still considering import strategies, over concerns about power availability.
“Two years ago in Le Bourget, President Macron confirmed France’s commitment to e-SAF development in front of the worldwide airline industry,” Huard said. “However, on the ground, we sometimes still perceive hesitation about the appropriateness of such developments”.
This shift is largely driven by concerns over electricity supply shortages, Huard said. France, which has historically relied on nuclear power to meet much of its energy demand, experienced significant disruptions from late 2021 to 2023.
A combination of stress corrosion issues affecting multiple nuclear reactors simultaneously and the postponement of major maintenance operations due to COVID-19 disruptions led to significant power deficits in France, and this was further exacerbated by the gas crisis triggered by the war in Ukraine.
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