European green and renewable energy producer Lhyfe and Ugitech, stainless long products subsidiary of Switzerland-based steelmaker Swiss Steel Group, have inked a memorandum of understanding to build a green production unit at Ugitech’s Ugine plant in France in order to partially decarbonize the steelmaker’s operations. The agreement in question marks a transition to green hydrogen from fossil fuels for the first time in Europe’s stainless steel sector.
Accordingly, Lhyfe is planning to build a green hydrogen production unit with a capacity of up to 12 mt per day at the Ugine plant. The green hydrogen produced will be mainly used at the plant in question, supplied through a pipeline. Both parties are currently carrying out the feasibility study for the project.
Having a steel production capacity of around 200,000 mt per year, Ugitech will use green hydrogen in some of its equipment such as burners, reheating furnaces and heat treatment furnaces. By this transition, the producer will be able to cut emissions by 16,000 mt per year.