The German SHS Group (Stahl-Holding-Saar), together with its subsidiaries Dillinger, Saarstahl and ROGESA, has taken a major step in steel decarbonization by signing a long-term contract with French energy company Verso Energy, according to media reports. Under the agreement, SHS Group will receive at least 6,000 mt of certified green hydrogen annually.
Advancing its Power4Steel project, SHS Group ultimately plans to use up to 120,000 mt of hydrogen per year in its final expansion phase, positioning itself as the largest hydrogen customer in the region.
Hydrogen supply to start in 2029
SHS Group initiated a closed tender process in March 2024 to secure regionally produced green hydrogen, as previously reported by SteelOrbis. Verso Energy won the tender and will supply hydrogen over a ten-year period starting in 2029, with an annual minimum of 6,000 mt.
The hydrogen will be certified as Renewable Fuels of Non-Biological Origin (RFNBO), ensuring it is produced exclusively with renewable electricity.
Impact on steel production and carbon reduction
With the integration of hydrogen, recycled steel scrap and advanced technologies - including a new direct reduction plant and electric arc furnaces at Dillingen and Völklingen - SHS Group expects to cut its carbon emissions by up to 55 percent by the early 2030s, aligning with EU decarbonization funding requirements.
Verso Energy’s investment in electrolyzer infrastructure
To support this supply, Verso Energy will construct an electrolyzer worth more than €100 million, powered entirely by renewable energy. The hydrogen produced will flow through the Moselle-Saar Hydrogen Conversion (mosaHYc) pipeline network to SHS Group’s Dillingen plant, where it will be used in CO2-reduced steelmaking.
