[ case study ] tests to ensure all parts of the system worked correctly . of steel ’ s ability to be recycled indefinitely without compromising its quality .
The plant has wider benefits
This project relied on collaboration with several key partners for both funding and technical expertise . Sweden ’ s Energy Agency provided financial support through its Industrial Decarbonization initiative , backed by the EU ’ s Recovery and Resilience Facility ( RRF ), part of the NextGeneration EU program aimed at promoting a more sustainable Europe .
From a technical and operational standpoint , Hitachi Energy and Nel Hydrogen contributed their expertise to advance the plant for fueling the furnaces and supporting grid stability .
Other collaborators in the project include Volvo Group and Stegra ( formerly H2 Green Steel ), both working to expand the use of hydrogen . Volvo , through its partnership with Daimler Trucks , is using lessons from Hofors to explore how hydrogen could be used as a fuel for zeroemission road transport . Meanwhile , Stegra is using the project ’ s experience to guide its own efforts to produce low-emission steel powered by hydrogen .
Excess heat from the plant is also being used for district heating .
Part of broader environmental plan
Environmental sustainability has long been central to Ovako ’ s operations , with a strong focus on reducing carbon emissions in steel production . Since January 2022 , products have been produced using carbon-neutral methods , with remaining emissions offset through verified carbon credits .
What sets Ovako apart is its reliance exclusively on steel scrap as a raw material , rather than mining iron ore . This approach takes advantage
Created as a ‘ lighthouse project ,’ the plant demonstrates the potential for high-grade industrial heat to be generated entirely fossilfree . With the installation of eight alkaline electrolyzers , the plant sets a precedent for reducing CO 2 emissions by 50 % from current levels .
The future of steel production
The hydrogen plant at Hofors is just the beginning . Our goal is to implement local hydrogen production at all Ovako facilities where steel is rolled by 2030 , as long as there is sufficient access to fossil-free electricity to support the electrolysis process .
It started as an idea that worked only in theory and ended as a tangible solution with the potential to significantly reduce carbon emissions . The potential of hydrogen technology in the industry is enormous . If more steel plants and other industries around the world adopt this solution , it could save 300 million tons of carbon dioxide annually .
About the author
As Technical Specialist in Energy and Furnace Technology , Anders Lugnet has been with Ovako as a furnace engineer for over 12 years . He has spent countless hours in front of oily , smoky , and smelly furnaces , pondering the next step forward . With a background in mechanical engineering , Anders resides in the Swedish countryside outside Finsta , near Norrtälje . He has spent his career working on heating and heat treatment , constantly looking for ways to make the steel industry more energyefficient and environmentally friendly .
Hydrogen Tech World | Issue 20 | February 2025 19