Franco-German hydrogen project for green steel

08.09.2025

Source: E & M powernews

The German Stahl-Holding-Saar Group has concluded a cross-border supply contract for green hydrogen with the French company Verso Energy.

The SHS-Stahl-Holding-Saar Group (SHS Group) and the French energy company Verso Energy have concluded a purchase agreement for the annual supply of at least 6,000 tons of green hydrogen. From 2029, the SHS Group's steel factories will be supplied with hydrogen produced from green electricity over a period of ten years, according to a press release.

This will enable the SHS Group to achieve the targeted reduction of its CO2 emissions by up to 55 percent by the beginning of the 2030s in line with subsidies. The group includes Aktien-Gesellschaft der Dillinger Hüttenwerke (Dillinger), Saarstahl Aktiengesellschaft (Saarstahl) and Roheisen- und Rohstoffgesellschaft Saar mbH (Rogesa).

Verso Energy intends to supply hydrogen that is certified as RFNBO (Renewable Fuels of Non-Biological Origin) for the switch to more climate-friendly steel production. This certification ensures that the hydrogen is produced using electricity from renewable energy sources, the company adds. In combination with the use of steel scrap and new plant technology - including a direct reduction plant and electric arc furnaces in Dillingen and Völklingen - the Group intends to produce CO2-reduced steel in the future.

The hydrogen is to be produced in Carling in Lorraine. As a first step, Verso Energy is planning to invest more than 100 million euros in an electrolyzer there, which will be powered by renewable electricity. The hydrogen produced will be fed into the "mosaHYc" (Moselle-Saar-Hydrogen-Conversion) pipeline network, transported to the Dillingen site and used there for steel production.

Deliveries are made via the "mosaHYc" H2 pipeline

SHS subsidiary Rogesa launched a tender process for regionally produced hydrogen in March 2024. In April 2024, the SHS Group signed contracts for the construction of the Franco-German pipeline network "mosaHYc", which is being built by the gas network operators Creos Deutschland Wasserstoff GmbH and Natran Deutschland SA (formerly GRT Gaz SA).

The H2 pipeline is intended to secure the supply of hydrogen to industry near the border in future. In the final expansion stage, the SHS Group anticipates a demand of up to 120,000 tons of hydrogen per year and would therefore be the largest customer in the region.

Stefan Rauber, Managing Director of the SHS Group, said: "There is only one direction for Saarstahl and Dillinger: forwards. We are continuing unwaveringly on our path towards climate-friendly steel production in Germany and Saarland. This is a commitment to Germany and Europe as a business location."

Author: Stefan Sagmeister