The Franco-German agreement marks a further step in the Power4Steel decarbonization project and supports the development of a cross-border hydrogen economy.
ROGESA launched a closed tender process in March 2024 for regionally produced green hydrogen. Following this process, Verso Energy and ROGESA agreed on an annual supply over ten years starting in 2029. The hydrogen, certified as Renewable Fuels of Non-Biological Origin (RFNBO), will be produced using renewable electricity.
By combining these volumes of hydrogen with steel scrap and new plant technology – including a direct reduction plant and electric arc furnaces at Dillingen and Völklingen –SHS Group aims to reduce carbon emissions by up to 55% by the early 2030s.
The hydrogen will be produced at Verso Energy’s Carling Hydrogen Next Generation (CarlHYng) project in Carling, France. In the first phase, Verso Energy plans to build an electrolyzer, representing an investment of more than €100 million, powered by renewable electricity. The hydrogen will be fed into the Moselle-Saar Hydrogen Conversion (mosaHYc) pipeline network, transported to Dillingen, and used in CO₂-reduced steel production.
The mosaHYc pipeline, commissioned in April 2024 by Creos Deutschland Wasserstoff GmbH and NaTran Deutschland SA, provides the backbone for the regional hydrogen economy. In the final expansion stage, SHS Group expects to use up to 120,000 tons of hydrogen annually, making it the largest customer in the region.
Stefan Rauber, Managing Director of SHS and Chairman of the Board of Management of Saarstahl and Dillinger, said: “For Saarstahl and Dillinger, there is only one direction: forward! We are firmly committed to continuing on our path to climate-friendly steel production in Germany and here in Saarland. This is an unmatched commitment to Germany and Europe as industrial location. The availability of renewable hydrogen is an important criterion for the success of our Power4Steel decarbonization project. Dillinger and Saarstahl are progressing with the transformation as planned and will offer their customers a high-quality portfolio of CO₂-reduced steel products.”
Jonathan Weber, Managing Director of SHS and Chief Transformation Officer of Saarstahl and Dillinger, commented: “We are confident that we have found a strong partner in Verso Energy to make our entry into hydrogen-based steel production for Saarstahl and Dillinger at the Saarland site a success. With this contract, we have secured the first quantities of hydrogen for the SHS Group and have thus achieved another milestone for our Power4Steel decarbonization project.”
Xavier Caïtucoli, President of Verso Energy, stated: “The mission of Verso Energy is to achieve the decarbonization of what everyone thought was impossible to decarbonize. This contract with SHS demonstrates it: thanks to hydrogen, it is now possible to produce steel with significantly lower CO₂ emissions, provided that innovative and integrated models are implemented, from the production of green electrons to the production of molecules. This project confirms Verso Energy’s trajectory, as the company aims to become the European leader in the production of low-carbon molecules for industry and transport.”
Antoine Huard, CEO of Verso Energy, added: “We are proud of this partnership with SHS, one of the leading steel producers in Europe, and we are fully committed to making this project a reality. It will be one of the first green hydrogen production plants dedicated to the steel industry and, as such, will play a key role in decarbonizing this industrial sector in Europe. We are convinced that it is precisely this type of project that will help catalyze the transition towards a sovereign and decarbonized industry, creating value and sustainable jobs in Europe.”
