Austrian steel manufacturer voestalpine and energy provider VERBUND are investing in the expansion of their hydrogen production facility in Linz. The H2FUTURE pilot plant will receive additional storage capacity and processing technology. The research project aims to advance industrial hydrogen applications through 2029.
Technical Upgrade of Electrolysis Facility
Voestalpine and VERBUND are implementing a €16.4 million investment to expand their H2FUTURE plant, operational since 2019. The modernization includes a new compression and purification facility as well as five hydrogen storage tanks with a total capacity of one ton. This infrastructure will improve the production stability of the electrolysis plant.
"With a storage capacity of one ton of hydrogen, we can balance production fluctuations and ensure consistent supply to our customers," explains VERBUND CEO Michael Strugl. The Austrian energy company already markets green hydrogen through its subsidiary VERBUND Green Hydrogen GmbH. In April, the company signed a supply agreement with Germany's Westfalen AG starting in 2026.
Project Progress and Timeline
Preparatory work for the plant expansion has been underway for two years. Components are currently in the installation phase. Functional testing will begin in January 2026, with initial research results expected by end-2026. The project timeline extends through December 2029.
Existing Plant Capacity and Technology
The H2FUTURE electrolysis facility features twelve PEM stacks from Siemens Energy, each with 50 electrolysis cells and a total capacity of 6 megawatts. The plant produces up to 1,200 cubic meters of green hydrogen per hour and has generated several hundred tons since commissioning. Beyond hydrogen production, the facility provides grid frequency regulation services to compensate for fluctuations from variable renewable energy sources. According to VERBUND, it represents one of the world's longest-operating hydrogen facilities.
Integration into Decarbonization Strategy
Voestalpine utilizes the green hydrogen produced in Linz for research projects and its decarbonization program "greentec steel." "We are pursuing a structured transformation plan with greentec steel," explains Voestalpine CEO Herbert Eibensteiner. Hydrogen occupies a central position in this strategy.
Starting in 2027, the company will commission one electric arc furnace powered by green electricity each at the Linz and Donawitz sites, while simultaneously decommissioning two coal-based blast furnace units. By 2050, Voestalpine aims to achieve steel production with net-zero CO₂ emissions.
The hydrogen from Linz will eventually be deployed in the hydrogen-based direct reduction plant HYFOR. Voestalpine has been developing this technology since late 2022 in a consortium with Primetals Technologies and mining company Fortescue. The planned prototype is designed to produce three to five tons of green pig iron per hour.
