Lhyfe and Ugitech Forge Partnership to Pioneer Green Hydrogen Use in Stainless Steel Production

Lhyfe and Ugitech Forge Partnership to Pioneer Green Hydrogen Use in Stainless Steel Production

Lhyfe, recognized as a pioneer in green and renewable hydrogen production, has teamed up with Ugitech, a Swiss Steel Group subsidiary and the global leader in long stainless steel products. Together, they have announced a memorandum of understanding to establish a green hydrogen production unit at the Ugitech plant in Ugine, Savoie, France. This initiative aims to decarbonize a portion of Ugitech’s industrial operations and promote cleaner local mobility. The project will also support sustainable winter tourism in the region, aligning with the upcoming 2030 Winter Olympics hosted in the French Alps.

Ugitech, which produces approximately 200,000 tonnes of steel annually, is set to replace natural gas in its thermal processing equipment with green hydrogen. This switch is expected to prevent around 16,000 tonnes of CO2 emissions each year. For this transformation, Ugitech has chosen Lhyfe, marking its first partnership with a steel manufacturer. Lhyfe already operates three production sites and has multiple projects underway across Europe.

The planned green hydrogen production facility at Ugitech will have the capacity to produce up to twelve tonnes of hydrogen daily, with a maximum electrolysis capacity of 30 MW. Primarily, the hydrogen will supply Ugitech’s plant directly via pipeline, but Lhyfe will also serve local mobility and industry needs, fostering a regional hydrogen ecosystem in anticipation of the 2030 Winter Olympics.

Both partners are now progressing to the feasibility study phase of the project, with future steps contingent on the study’s findings, as well as necessary operating licenses, building permits, and financial investment decisions.

Philippe Desorme, Vice Chief Executive Officer at Lhyfe, expressed enthusiasm about the collaboration: “We are thrilled to partner with Ugitech and support their commitment to decarbonization. The steel industry is heavily dependent on fossil fuels, making it a prime candidate for early decarbonization efforts. Green hydrogen stands as a crucial component of this transition, offering a sustainable path forward for energy-intensive industries.”

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Frédéric Perret, Director of Development at Ugitech, detailed the broader context of their decarbonization strategy: “Ugitech is leading the HYDREAMS project, which tests the viability of replacing natural gas with hydrogen in steel thermal transformation processes. With nine European partners and funding from the European RFCS fund, HYDREAMS is conducting laboratory and industrial tests to ensure hydrogen use does not adversely affect steel processing. This MoU with Lhyfe marks a significant step toward scaling up this clean energy solution in our operations.”

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