Lhyfe and Ugitech, a subsidiary of Swiss Steel Group, the world leader in long stainless steel products, have announced the signing of a memorandum of understanding for the creation of a green hydrogen production unit at Ugitech’s Ugine site (Savoie, France), to decarbonise part of the steelmaker’s industrial operations and help decarbonise local mobility. This site, which is to be located in the heart of the French Alps where the 2030 Winter Olympics will be held, should also contribute to a sustainable model of winter tourism. This is the first agreement in Europe to replace fossil fuels with green hydrogen in the stainless steel sector. 

As part of its roadmap for decarbonising its business, Swiss Steel Group, one of the world’s largest producers, processors and distributors of long special steel products, has decided to use green hydrogen at the Ugitech plant in Ugineto replace the natural gas used in some of its thermoprocessing equipment (burners, reheating furnaces, heat treatment furnaces, etc.) and thus decarbonise part of its industrial processes. The steelmaker, which produces around 200,000 tonnes of steel a year, has selected Lhyfe to support it in this energy transition. This project could avoid emitting 16,000 tonnes of CO2 a year.

Lhyfe, which is signing its first memorandum of understanding with a steel manufacturer, already has three production sites and is currently building several sites in Europe. Lhyfe plans to install a green hydrogen production unit with a capacity up to 12 tonnes per day (a maximum electrolysis capacity of 30 MW), at Ugitech’s Ugine plant. This green hydrogen would be used mainly at the Ugitech plant, supplied via a pipeline. Lhyfe would also supply hydrogen to local mobility and industry players, to help develop the local hydrogen ecosystem, particularly in the run-up to the 2030 Winter Olympics. 

The two partners are now entering the feasibility study phase of the project. Implementation of the project will be subject to the conclusions of this study, the granting of operating licences and building permits, and financial investment decisions.

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