German steel giant SHS has signed a ten-year agreement with French energy company Verso Energy for 6,000 tonnes of green hydrogen annually from 2029. The contract represents a crucial milestone in the company's Power4Steel decarbonization initiative, targeting carbon neutrality by 2045.
SHS-Stahl-Holding-Saar, along with its subsidiaries Dillinger, Saarstahl, and Rogesa, announced on September 5 the signing of a strategic hydrogen supply agreement with French energy firm Verso Energy. Starting in 2029, the partnership will deliver at least 6,000 tonnes of green hydrogen annually over a ten-year period.
Competitive Tender Process Yields French Partnership
The supply contract emerged from a competitive tender launched by Rogesa in March 2024. Verso Energy won with its proposal for RFNBO-certified hydrogen that meets stringent EU renewable energy criteria.
SHS has been a hydrogen pioneer in German steelmaking, becoming the first domestic steel company to deploy hydrogen at industrial scale in production processes back in 2020.
€100 Million Investment Powers Carling Facility
Verso Energy will produce the hydrogen through its CarlHYng project (Carling Hydrogen Next Generation). The company is investing over €100 million at the French Carling site to build electrolyzers powered exclusively by renewable electricity.
Transportation will utilize the planned mosaHYc pipeline network (moselle-saar-hydrogen-conversion), delivering directly to the Dillingen steel plant. The cross-border infrastructure is being developed by grid operators Creos Deutschland Wasserstoff GmbH and NaTran Deutschland SA. NaTran confirmed its final investment decision for the pipeline project in April 2024, encompassing 70 kilometers of line conversion and 20 kilometers of new construction.
Targeting 55% Emission Cuts by Early 2030s
By leveraging initial hydrogen volumes, increased scrap steel usage, and advanced technology (direct reduction plants and electric arc furnaces) at Dillingen and Völklingen facilities, SHS aims to reduce CO₂ emissions by up to 55% by the early 2030s. The long-term goal remains complete carbon neutrality by 2045.
"We remain steadfast in our journey toward climate-friendly steel production in Germany and Saarland," stated Stefan Rauber, CEO of SHS-Stahl-Holding-Saar and Chairman of Saarstahl and Dillinger boards. "Access to renewable hydrogen is fundamental to the success of our Power4Steel decarbonization project."
