German steel producer Stahl-Holding-Saar (SHS) has launched a tender to buy up to 50kt of locally produced renewable hydrogen for its Dillinger and Saarstahl plants in Saarland.

SHS and its subsidiaries are due to produce up to 3.5Mt/yr of green steel between 2027/28.

The closed tender process is part of SHS's Power4Steel decarbonization project. As part of the project, the steelmaker will attempt to lower up to 70% of carbon emissions associated with steel production.

The tender aims to identify green hydrogen suppliers along the cross-border MosaHYc hydrogen network in the Grande Region, to supply SHS's direct reduction iron plant from 2027. The tender is due to be completed by the end of 2024.

SHS is constructing a DRI plant at Dillingen and an electric arc furnace at Dillingen and Voelklingen, which will use hydrogen.

The company's hydrogen demand is expected to reach up to 50kt/yr by 2030, rising to 120kt-150kt/yr thereafter.

Dillinger and Saarstahl will focus on the use of hydrogen, electric steel production and recycling steel scrap. SHS plans to decarbonize progressively by 2045, commissioning its Dillingen DRI plant by 2030 and using two electric arc furnaces in Voelklingen and Dillingen with about 3.5Mt/yr crude steel capacity starting in 2027-28 and closing one blast furnace, with CO2 emissions reductions of about 55%.

The tender from SHS comes after Thyssenkrupp issued a tender in February seeking large volumes of green and blue hydrogen delivered by pipeline for its Duisburg steel plant in Germany from 2028.

Source: Hydrogen Insight