Lhyfe and Ugitech ink MoU for Decarbonizing Steelmaking Operations with Green Hydrogen

Lhyfe, a leading global producer of eco-friendly hydrogen, and Ugitech, a subsidiary of Swiss Steel Group, the foremost provider of long stainless steel products worldwide, have announced the signing of a memorandum of understanding. The agreement aims to establish a green hydrogen production facility at Ugitech's Ugine site in Savoie, France. This initiative is designed to reduce the carbon footprint of the steelmaker's industrial operations and support the transition to eco-friendly transportation in the region. Situated in the French Alps, where the 2030 Winter Olympics will be hosted, the site is expected to promote a sustainable model for winter tourism. Notably, this landmark agreement marks the first instance in Europe of replacing fossil fuels with green hydrogen in the stainless steel sector.

As part of its strategy to reduce carbon emissions, Swiss Steel Group, a global leader in the production, processing, and distribution of long special steel products, has opted to incorporate green hydrogen into operations at the Ugitech plant in Ugine. This move entails replacing natural gas currently utilized in various thermoprocessing equipment such as burners, reheating furnaces, and heat treatment furnaces, thereby facilitating the decarbonization of its industrial processes. With an annual steel output of approximately 200,000 tonnes, the steelmaker has enlisted the support of Lhyfe to facilitate this transition to cleaner energy sources. This initiative holds the potential to prevent the emission of 16,000 tonnes of CO2 annually.

Inking its inaugural memorandum of understanding with a steel producer, Lhyfe is expanding its footprint in the industry. With three operational production sites and ongoing construction of multiple facilities across Europe, Lhyfe is solidifying its presence in the green hydrogen sector.

The plan involves producing up to twelve tonnes per day to reduce the carbon footprint of Ugitech’s operations and promote the use of hydrogen in regional mobility

Lhyfe intends to establish a green hydrogen production facility at the Ugitech plant, capable of generating up to twelve tonnes per day (with a maximum electrolysis capacity of 30 MW). The primary use of this green hydrogen would be at the Ugitech plant, delivered through a pipeline. Additionally, Lhyfe plans to provide hydrogen to local transportation and industrial sectors, fostering the growth of the regional hydrogen ecosystem, especially leading up to the 2030 Winter Olympics.

The two collaborators are currently proceeding to the feasibility study stage of the project. The execution of the project will hinge upon the findings of this study, the acquisition of operational licenses and construction permits, as well as financial investment determinations.

Philippe Desorme, Vice Chief Executive Officer at Lhyfe, expressed his satisfaction in signing this memorandum of understanding with Ugitech, highlighting Ugitech's dedication to decarbonization. Desorme emphasized the significance of decarbonizing the steel sector, considering its substantial reliance on fossil fuels. He stressed the urgency of the energy transition for the sustained viability of industries, identifying green hydrogen as a pivotal element in this transition. Desorme emphasized the imperative of swiftly deploying green hydrogen, particularly within the steel sector.

Frédéric Perret, Director of Development at Ugitech, outlined Ugitech's leadership role in the HYDREAMS project, aimed at demonstrating the feasibility of replacing natural gas with decarbonized hydrogen in thermal steel transformation processes such as reheating and heat treatment furnaces. With nine European partners and financial support from the European RFCS fund, the HYDREAMS project utilizes laboratory tests and industrial demonstrators to ensure that hydrogen combustion does not adversely affect processes or products. Commencing in April 2023 and concluding in October 2027, the project seeks to validate the viability of hydrogen as a substitute fuel. Following successful validation, the objective is to implement this innovative solution across systems where direct electrification is not feasible, as outlined in the memorandum of understanding with Lhyfe.