By Anders Lugnet, Group Technical Specialist, Energy & Furnace Technology, Ovako AB
The hydrogen journey begins in Hofors
The new hydrogen plant is located at the Hofors steel mill, around 200 km north of Stockholm. This site has a long history of iron and steel production, beginning in 1549, and started its shift toward decarbonization in 1930 with the installation of its first electric arc furnace (EAF).
Over time, the mill phased out its last blast furnace in 1977 and converted its steel heating furnaces to oxyfuel (a mix of liquid petroleum gas and oxygen) in 1995. Electrification efforts began in earnest in 2012 for its heat treatment furnaces, followed by the publication of verified climate declarations in 2018. These measures have helped Ovako achieve an 80% lower carbon footprint in a cradle-to-gate comparison with the global industry average.
Decarbonizing steel production relies on electrification to meet the high temperatures required for melting, hot-forming, and heat treatment. At Hofors, melt shops and heat treatment furnaces now run on fossil-free Nordic electricity, reducing emissions significantly.
The remaining challenge was the heating furnaces, which reach 1,200°C using fossil fuels like liquid petroleum gas (LPG) to heat steel to the required temperature for hot-rolling. Producing hydrogen through water electrolysis offers an indirect form of electrification for the heating furnaces, bypassing the need for fossil fuels entirely.
This is where the hydrogen plant comes in. The Hofors mill now operates a 20-MW electrolyzer, one of Europe’s largest, capable of producing 3,880 cubic meters of hydrogen per hour, along with oxygen. By using fossil-free hydrogen, the plant has the potential to reduce the site’s carbon footprint by 20,000 tons a year.
Trials showed its potential
The decision to switch to hydrogen followed a collaborative project with the gas company Linde Gas AB, where a full-scale trial demonstrated the use of hydrogen to heat steel before rolling in a production setting. Ovako conducted its first lab tests using hydrogen to heat steel for rolling in 2019. A year later, the process was tested in the actual furnaces – with great success.
The trial at the Hofors mill showed that hydrogen can be used easily and effectively to heat steel. Most importantly, the switch to hydrogen had no effect on the quality of the steel. With these results, it became clear that hydrogen heating could be introduced in rolling mill furnaces under the right conditions, further lowering the carbon footprint of steel production.
Drawing water from local supply
The electrolyzer is located near the furnaces at Hofors, allowing the hydrogen production process to be seen as ‘borrowing’ water for a short time. The plant takes water from the local supply and splits it into hydrogen and oxygen. These are then combined again to create oxyfuel, which is injected into the furnace. When burned, the oxyfuel returns to water. This approach requires only a few minutes of storage as a buffer for fluctuations in production and demand.
The system has many different components, including the electrolyzer itself, scrubbers, storage tanks, compressors, pipes, and electrical equipment like transformers and rectifiers. A smart control system has also been developed for a smooth switch between hydrogen and propane (LPG) oxyfuels. Before the plant became operational, Ovako experts conducted extensive tests to ensure all parts of the system worked correctly.
The plant has wider benefits
This project relied on collaboration with several key partners for both funding and technical expertise. Sweden’s Energy Agency provided financial support through its Industrial Decarbonization initiative, backed by the EU’s Recovery and Resilience Facility (RRF), part of the NextGeneration EU program aimed at promoting a more sustainable Europe.
From a technical and operational standpoint, Hitachi Energy and Nel Hydrogen contributed their expertise to advance the plant for fueling the furnaces and supporting grid stability.
Other collaborators in the project include Volvo Group and Stegra (formerly H2 Green Steel), both working to expand the use of hydrogen. Volvo, through its partnership with Daimler Trucks, is using lessons from Hofors to explore how hydrogen could be used as a fuel for zero-emission road transport. Meanwhile, Stegra is using the project’s experience to guide its own efforts to produce low-emission steel powered by hydrogen.
Excess heat from the plant is also being used for district heating.
Part of broader environmental plan
Environmental sustainability has long been central to Ovako’s operations, with a strong focus on reducing carbon emissions in steel production. Since January 2022, products have been produced using carbon-neutral methods, with remaining emissions offset through verified carbon credits.
What sets Ovako apart is its reliance exclusively on steel scrap as a raw material, rather than mining iron ore. This approach takes advantage of steel’s ability to be recycled indefinitely without compromising its quality.
Created as a ‘lighthouse project,’ the plant demonstrates the potential for high-grade industrial heat to be generated entirely fossil-free. With the installation of eight alkaline electrolyzers, the plant sets a precedent for reducing CO₂ emissions by 50% from current levels.
The future of steel production
The hydrogen plant at Hofors is just the beginning. Our goal is to implement local hydrogen production at all Ovako facilities where steel is rolled by 2030, as long as there is sufficient access to fossil-free electricity to support the electrolysis process.
It started as an idea that worked only in theory and ended as a tangible solution with the potential to significantly reduce carbon emissions. The potential of hydrogen technology in the industry is enormous. If more steel plants and other industries around the world adopt this solution, it could save 300 million tons of carbon dioxide annually.
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