French group Verso Energy has committed to supplying the steel industry in the German Saarland with hydrogen produced from renewable electricity, through a ten-year contract signed with SHS (Stahl-Holding-Saar). The agreement covers the delivery of at least 6,000 tonnes of hydrogen between 2029 and 2039, intended to replace coal in steel manufacturing processes.
Production site located in Moselle
The hydrogen will be produced in Carling, Moselle, at a site currently under development. Distribution to Dillingen, about 30 kilometres away, will be ensured via a cross-border infrastructure named Mosahyc (Moselle Saar Hydrogen Conversion), a pipeline network connecting France and Germany. The project includes the construction of a plant with an initial capacity of 70 megawatts (MW), scheduled to be operational by late 2029.
Progressive capacity ramp-up
The investment required for this first phase exceeds €100mn ($107mn). Ultimately, the production capacity could reach 300 MW, equivalent to approximately 50,000 tonnes of hydrogen annually. The project is described as the first of its kind in the region. SHS, Germany’s third-largest steel producer, aims to fully phase out coal in its production, in line with its industrial transformation plan.
Significant public support
The decarbonisation of the steel group is backed by substantial public funding, with €2.6bn ($2.78bn) allocated by the German federal government and the Saarland, an amount approved by the European Commission. Verso Energy’s management highlighted the growing interest of industrial players in hydrogen, citing the need to diversify energy sources in response to gas price volatility.
