Lhyfe to install 30-MW electrolyser at French steel plant

Swiss Steel Group has tapped Lhyfe (EPA:LHYFE) to install a 30-MW green hydrogen production plant to decarbonise the manufacturing of stainless steel products at its site in France’s Savoie department.

The Nantes, France-based green hydrogen developer said on Tuesday it will set up the facility for its client’s Ugitech subsidiary, in line with the group’s ambitions to decarbonise part of its industrial operations. The initiative will be carried out under a Memorandum of Understanding (MoU) between Lhyfe and Ugitech.

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The proposed green hydrogen unit will replace natural gas used in some of its thermoprocessing equipment at Ugitech’s factory in Ugine.

According to the press statement, the agreement is the first one for a project to replace fossil fuels with green hydrogen in the European stainless steel sector. Up to 12 tonnes of green fuel will be produced at the site each day, enabling 16,000 tonnes of carbon dioxide (CO2) emissions to be mitigated annually. The green hydrogen will be mostly used at the Ugitech plant, while some of it will be supplied to local mobility and industry players.

Lhyfe and Ugitech will conduct a feasibility study of the project, while the implementation will depend on the receipt of operating licences, building permits and financial investment decisions.