As part of the agreement, hydrogen produced in Moselle between 2029 and 2039 will be supplied to SHS via cross-border pipeline infrastructure. In this process, the company commits to providing at least 6,000 tonnes of hydrogen, which will replace coal in steel production.
The hydrogen will be produced at a plant currently under construction in Carling, France. The facility, with a capacity of 70 MW, will go into operation at the end of 2029. Located about 30 km from SHS’s facilities in Dillingen, the hydrogen from this plant will be transported through the Mosahyc (Moselle Saar Hydrogen Conversion) pipeline along the France-Germany corridor.
300 MW target and investment exceeding €100 million
In the initial phase, more than €100 million will be invested in the project. Capacity will gradually be increased to 300 MW, reaching an annual production capacity of around 50,000 tonnes of hydrogen. With this scale, the project will become one of the region’s most comprehensive green hydrogen initiatives.
Transformation accelerated by public support
SHS’s transition to carbon-free steel production is backed by €2.6 billion in public funding. In addition to the German federal government and the Saarland administration, the European Commission has also approved the project. Verso Energy officials emphasize that fluctuations in gas prices are increasing the need to diversify energy sources in industry, while highlighting that hydrogen is becoming an increasingly attractive alternative for industrial use.
Stefan Rauber, CEO of SHS Group and Chairman of the Executive Boards of Saarstahl and Dillinger:
“For us, there is only one direction: forward! We remain committed to climate-friendly steel production. This agreement is a major step for our Power4Steel project and an important commitment to the industrial future of Germany and Europe.”
Jonathan Weber, Chief Transformation Officer of SHS Group:
“We believe we have found a strong partner in Verso Energy. With this agreement, we have taken the first step toward hydrogen-based steel production and reached a new milestone in our Power4Steel project.”
Xavier Caïtucoli, President of Verso Energy:
“Verso Energy’s mission is to achieve decarbonization even in fields that seem impossible. This agreement shows that producing low-carbon steel with renewable hydrogen is possible.”
Antoine Huard, CEO of Verso Energy:
“We are proud to cooperate with SHS, one of Europe’s leading steel producers. This project will play a key role in decarbonizing the steel industry and accelerating sustainable industrial transformation in Europe.”
Anke Rehlinger, Prime Minister of Saarland:
“Today we have taken a historic step for the future of Saarland’s steel industry. This cooperation secures the future of both industrial facilities and thousands of jobs. At the same time, it strengthens the development of the European hydrogen network.”
Jürgen Barke, Saarland Minister of Economic Affairs:
“Power4Steel is one of Europe’s largest transformation projects. Our region, long tied to coal, is now building its future with hydrogen. This cooperation sends a strong message to Brussels and Berlin: we are ready.”
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