Swedish pilot proves hydrogen storage can cut cost of fossil-free steelmaking

  • Gas
  • February 28, 2025

HYBRIT, a joint initiative in Sweden by the steelmaker SSAB, mining company LKAB, and energy provider Vattenfall, has successfully completed a hydrogen storage pilot and submitted findings to the Swedish Energy Agency. The results confirm that large-scale, fossil-free hydrogen storage is technically viable and could lower production costs by up to 40%.

Launched in 2016, HYBRIT aims to develop the world’s first fossil-free, ore-based steelmaking process using hydrogen. Its latest phase has been focused on hydrogen production and storage to support large-scale industrial operations.

Steel production accounts for around 7% to 9% of global carbon dioxide (CO2) emissions, largely due to reliance on coal in blast furnaces. Fossil-free hydrogen could eliminate nearly all CO2 emissions from the steelmaking process, potentially cutting over two tonnes of CO2 per tonne of steel produced, according to the International Energy Agency.

As part of the pilot, HYBRIT constructed a 100m³ steel-lined rock cavern storage facility in Svartöberget, Luleå, Sweden, next to its sponge iron production site. The facility underwent accelerated testing, simulating 50 years of operation, confirming its safety, functionality, and cost-effectiveness for large-scale hydrogen users.

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