Hybrit, a Swedish joint venture between SSAB, LKAB, and Vattenfall, has successfully concluded its pilot hydrogen storage project, marking a significant milestone in the effort to enable fossil-free steel production. This project, which was reported to the Swedish Energy Agency, demonstrates the technical feasibility of large-scale hydrogen storage for industrial applications in the steel sector.
As part of the initiative, a 100 m³ hydrogen storage facility was designed and constructed using rock cavern technology with a steel lining. The pilot project’s successful testing has proven that this storage solution can support a major hydrogen user in the steel industry. Additionally, the project has highlighted potential savings of 25-40% in hydrogen production costs.
The storage facility underwent extensive accelerated mechanical testing, simulating approximately 50 years of operation, confirming its safety, durability, and efficiency. Mikael Nordlander, Director of Industry Decarbonisation at Vattenfall’s Industrial Partnerships, commented, “The pilot project has been a great success. We’ve shown that this technology can increase electricity system flexibility and that it is a safe, long-lasting solution.”
The primary aim of this hydrogen storage facility is to help balance hydrogen production with fluctuations in the electricity market. It allows for the production and storage of hydrogen during periods of low electricity prices and a reduction in production when prices rise, optimizing overall costs.
Martin Pei, CTO of SSAB, highlighted the economic and environmental benefits of the project, saying, “The results of the HYBRIT pilot project demonstrate that large-scale, fossil-free hydrogen storage is both technically feasible and economically advantageous. With these innovations, we can build robust, fossil-free value chains that will significantly reduce the climate footprint of the steel industry.”
The Swedish Energy Agency co-financed 22% of the project, with the remaining funding provided by Hybrit’s parent companies. In December 2023, Hybrit also received a SEK 3.1 billion ($302 million) grant from the Swedish Energy Agency's Industriklivet program. This funding will support the construction of the first demonstration plant in Jällivare, focused on producing fossil-free sponge iron at an industrial scale, led by LKAB.
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