Swedish Hybrit, a joint venture of SSAB, LKAB, and Vattenfall, has successfully finished its pilot hydrogen storage project, a milestone in the endeavor to make fossil-free steel production possible. The project, which was reported to the Swedish Energy Agency, shows the technical possibility of large-scale hydrogen storage for industrial use in the steel industry.

As part of the project, a 100 m³ hydrogen storage plant was planned and built with rock cavern technology lined with steel. Successful pilot project testing has demonstrated that the storage technology can be used to serve a major steel industry user of hydrogen. The project has further indicated prospective hydrogen production cost savings of 25-40%.

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 main objective of this hydrogen storage plant is to balance hydrogen production with market variations in electricity. It makes possible the generation and storage of hydrogen during times when electricity is low and less generation during higher electricity prices, thereby optimizing overall expenses.

Martin Pei, SSAB’s CTO, emphasized the economic and environmental advantages of the project, stating, “The outcome of the HYBRIT pilot project shows that fossil-free hydrogen storage at large scale is both technically and economically viable. With these breakthroughs, we can create solid, fossil-free value chains that will cut the climate footprint of the steel industry by a substantial amount.”

22% to the project was funded by the Swedish Energy Agency.

The rest of the capital was made available by Hybrit’s parent companies.

In December 2023, Hybrit has also been awarded a SEK 3.1 billion ($302 million) grant by the Swedish Energy Agency’s Industriklivet program.

The funds are intended for the development of the first demonstration plant in Jällivare, dedicated to the production of fossil-free sponge iron on an industrial level, under the lead of LKAB.