In a historic first for Europe, green hydrogen producer Lhyfe has signed a memorandum of understanding with leading stainless steel company Ugitech to establish a green hydrogen production facility at Ugitech’s plant in the French Alps.
This innovative partnership aims to replace conventional fossil fuels with clean hydrogen in steel manufacturing, significantly reducing pollution, according to Renewable Energy Magazine.
Key Project Details
Under the agreement, Lhyfe will install a green hydrogen production unit at Ugitech’s site in Ugine, France, capable of generating around 13 tons of hydrogen per day. This locally produced hydrogen will power the steel plant’s furnaces and heating equipment, with any excess supply available to fuel clean transportation in the region.
Environmental Impact
Transitioning to green hydrogen can dramatically reduce the environmental footprint of steel production. The steel industry is a major source of carbon emissions, accounting for about 7% of global carbon pollution. By adopting green hydrogen, Ugitech’s facility could prevent the release of over 17,000 tons of carbon dioxide annually. On a broader scale, expanding the use of green hydrogen in heavy industry is essential for mitigating the severe impacts of climate change, such as extreme weather events and threats to food security.
Economic and Community Benefits
Located in the heart of the 2030 Winter Olympics zone, the Ugine plant’s shift to green hydrogen will also contribute to a more sustainable model for the Games and winter tourism in the Alps. This project exemplifies how industrial innovation can support both environmental and economic goals. Ugitech, which produces 220,000 tons of steel annually, is taking bold steps towards a greener future.
“The next step is to roll out this new solution to all systems where direct electrification is not a viable option,” said a spokesperson from Ugitech. “This is the purpose of our memorandum of understanding with Lhyfe.”
Future Steps
The two companies will now conduct a feasibility study before proceeding with the hydrogen plant’s construction and financing. This groundbreaking partnership is poised to inspire other heavy-industry leaders to pursue cleaner, more sustainable practices.
