SHS Group and Verso Energy Sign Groundbreaking Hydrogen Contract

SHS, which holds significant stakes in the Saarland steel industry, and energy company Verso Energy have signed a long-term contract for the annual supply and purchase of at least 6.000 tonnes of hydrogen. With the conclusion of this Franco-German agreement, the ‘Power4Steel’ steel decarbonisation project has cleared another hurdle on the road to climate-friendly steel production. Verso Energy and the SHS Group are thus giving the green light for the regional, cross-border hydrogen economy.

ROGESA, which is one of the companies involved in the SHS Group alongside Dillinger and Saarstahl, launched a closed tender process in March 2024 for the procurement of regionally produced hydrogen. As a result of this regular tender, Verso Energy and ROGESA have agreed on a long-term supply contract starting in 2029.

Verso Energy will supply the Saarland steel industry with RFNBO-certified (Renewable Fuels of Non-Biological Origin) hydrogen. The certification guarantees that the hydrogen was produced using green electricity. Using these initial quantities of hydrogen, steel scrap and new plant technology consisting of a direct reduction plant and an electric arc furnace at the Dillingen and Völklingen sites, the SHS Group will be able to achieve its target reduction in CO2 emissions of up to 55 per cent by the early 2030s in line with funding requirements.

"For Saarstahl and Dillinger, there is only one direction: forward! We are continuing unwaveringly on our path towards climate-friendly steel production in Germany and the Saarland. This is an unbeatable commitment to Germany and Europe as a business location. The availability of renewable hydrogen is an important criterion for the success of our Power4Steel decarbonisation project. Dillinger and Saarstahl are progressing as planned in their transformation and will offer their customers a high-quality portfolio of CO2-reduced steel products," says Stefan Rauber, Managing Director of SHS and Chairman of the Executive Board of Saarstahl and Dillinger.