The Dawn of Green Hydrogen: An Industrial Revolution in Steel

European heavy industry is undergoing a major transformation with the adoption of green hydrogen.
Hydrogène Vert Avenir Industriel

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Europe is witnessing an industrial revolution, with the rise of green hydrogen as a pillar of the energy transition. At the heart of this transformation is an ambitious project to produce green hydrogen in industrial quantities, a crucial initiative to decarbonize heavy industry. The installation of Europe’s largest electrolyzer symbolizes this project.

Thyssenkrupp and the Green Steel Revolution

Against this backdrop, green hydrogen is seen as a promising alternative to fossil fuels in key sectors such as the steel industry. In fact, German steelmaker Thyssenkrupp is planning to transform its historic blast furnaces by adopting this technology. The use of hydrogen for the direct reduction of iron ore could revolutionize steel production, replacing coal, which has been used for over a century and a half.

Siemens Energy and Air Liquide: Partners in Innovation

This initiative is not isolated. Other major industry players, such as Siemens Energy and Air Liquide, have also entered the green hydrogen race. Their collaboration has resulted in the creation of a gigafactory for the manufacture of electrolysis modules, which will play a key role in the large-scale production of green hydrogen.

The Challenges of Financing and Generating Decarbonized Electricity

Government support for these projects is undeniable. French Industry Minister Roland Lescure and German Chancellor Olaf Scholz expressed their enthusiasm for these initiatives, highlighting their potential to radically transform energy-intensive industries. This transition is urgently needed, particularly in regions historically dependent on coal and gas, such as North Rhine-Westphalia, which plays a crucial role in the German chemical and steel industries.
Nevertheless, there are major challenges facing this transition to green hydrogen. Financing such projects and increasing the amount of carbon-free electricity needed to run them remain major obstacles. The energy crisis exacerbated by the conflict in Ukraine has also highlighted Europe’s vulnerability in terms of energy supply, prompting some manufacturers to rethink their investment strategies.

North Rhine-Westphalia at the Heart of the Energy Transition

Thyssenkrupp, in particular, has already secured power supply agreements for its first electrolyser-equipped site, but the scale of future needs remains a challenge. The company expects to require up to 500,000 tonnes of hydrogen per year for its direct iron reduction systems, an astronomical amount compared with the current production capacity of the Oberhausen electrolyzer.
These developments signal a profound change in the way Europe sees its energy future. The next three years will be crucial in determining whether the hydrogen market can really take off, and whether traditional industries will be able to adapt in time to meet the challenges of climate change.

Europe is at the dawn of a new era, with green hydrogen at the heart of its industrial revolution. This transition, though fraught with obstacles, offers an unprecedented opportunity to reshape heavy industry and make progress in the fight against climate change. The success of this paradigm shift will depend on collaboration between companies, governments and innovators, and on the collective will to prioritize a sustainable future.

Lhyfe becomes the first French producer to obtain European RFNBO certification, delivering the first batches of certified hydrogen and opening access to new support mechanisms for the industrial sector.
Tree Energy Solutions and CPC Finland will produce 125,000 tonnes annually of e-NG at the Finnish port of Rauma, targeting European and international markets with a significant investment.
The European Commission grants €3.5mn to support preparatory work for a Franco-German cross-border network aimed at transporting hydrogen between the Grand Est region and Baden-Württemberg starting in 2029.
French company McPhy Energy awaits a court decision regarding offers submitted during its judicial reorganization, paving the way for probable liquidation and potential delisting of its shares.
The majority-Indigenous-owned Canadian manufacturer HyVera Distributed Energy is introducing an eCat pellet that instantly produces ultra-pure green hydrogen without external electricity and is counting on two pilot plants to simplify industrial supply.
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Singapore-based hydrogen specialist Hydrexia seals a protocol with Indonesian gas giant Samator to deploy purification, transport and storage of hydrogen, betting on rapidly growing local demand and export outlets to the Asia-Pacific region.
Cadiz Inc. signs a memorandum of understanding with British company Hoku Energy for a large-scale energy project including green hydrogen, solar power, and digital infrastructure in the Californian desert, projecting annual revenues of up to $10mn.
BP indefinitely halts its blue hydrogen project at the Whiting refinery in Indiana, raising questions about the future of federal funding and the impact on regional plans for a decarbonized hydrogen sector in the United States.
The Polish energy group ORLEN receives a non-repayable grant of €382 million from the National Recovery Plan to finance its renewable and low-emission hydrogen production initiatives.
Georgia Power and Mitsubishi Power announce successful completion of an unprecedented test incorporating 50% hydrogen into an advanced gas turbine, reducing CO2 emissions by 22% compared to natural gas alone.
Neoenergia has begun construction of one of Brazil's first green hydrogen plants, aimed at supplying heavy and light vehicles, with an investment exceeding 30 million Brazilian reais ($5.99mn).
The SA-H2 fund, supported by international partnerships and local institutional backing, mobilises 37 million USD to develop export-oriented green hydrogen from South Africa, with an initial concrete project announced.
Turbotech reports successful combustion testing of a hydrogen turboprop, developed through digital simulation with Ansys, marking an industrial milestone in light aircraft using alternative fuel.
France Hydrogène responds to the Cour des Comptes report published on June 5, criticising an incomplete reading of updated targets and the economic impacts of decarbonised hydrogen development.
The Belfort Commercial Court has opened a judicial reorganisation procedure for McPhy, while a renewed call for tenders for its asset sale is now set to close on 13 June.
Plug Power CFO Paul Middleton acquired 650,000 shares on the market, affirming his support for the long-term strategy of the hydrogen-focused company.
The Canadian government is funding an initiative to support 40 SMEs in British Columbia’s hydrogen sector, aiming to increase foreign investment and expand international market share.
Developer CWP Global has paused its $40 billion AMAN project in Mauritania due to a lack of buyers for green ammonia despite favourable local conditions.
A study reveals that the profitability of African green hydrogen exports to the European Union depends on political support from Europe, despite the abundance of ongoing projects on the continent.