Posted on 09 Sep 2025
French energy firm Verso Energy has inked a deal with German steel producer Stahl-Holding-Saar (SHS) Group for the long-term supply of green hydrogen, Kallanish learns.
Under the 10-year offtake agreement starting in 2029, Verso will supply at least 6,000 tonnes/year of green hydrogen to SHS Group’s planned direct reduction iron (DRI) plant at Dillingen and an electric arc furnace at the Dillingen and Voelklingen sites in Saarland, Germany. SHS and its subsidiaries – Dillinger, Saarstahl, and ROGESA – last year launched a tender to procure up to 50,000 t/y of hydrogen, certified as renewable fuels of non-biological origin (RFNBO).
Under the so-called Power4Steel project, the group aims to reduce its carbon emissions by up to 55% by the early 2030s.
“We are firmly committed to continuing on our path to climate-friendly steel production in Germany and here in Saarland,” comments Stefan Rauber, managing director of SHS. “This is an unmatched commitment to Germany and Europe as industrial location. The availability of renewable hydrogen is an important criterion for the success of our Power4Steel decarbonisation project.”
The hydrogen will be produced at Verso’s CarlHYng project in Carling, France, which will have an initial investment of €100 million ($117.3m). The project eyes a total electrolyser capacity of 300 megawatts (MW) by 2030, deployed in three phases of 100 MW between 2027 and 2030.
According to Antoine Huard, ceo of Verso, the project will be one of the first to be dedicated to the steel industry.
The hydrogen produced is then planned to be transported to the Dillingen steel plant through the Moselle-Saar Hydrogen Conversion (mosaHYc) pipeline network, the companies say in a joint statement. The Franco-German pipeline network was commissioned by SHS in April 2024 and is being built by the network operators Creos Deutschland Wasserstoff GmbH and NaTran Deutschland SA.
“The mission of Verso Energy is to achieve the decarbonisation of what everyone thought was impossible to decarbonise,” adds Xavier Caïtucoli, president of Verso Energy. “This contract with SHS demonstrates it: thanks to hydrogen, it is now possible to produce steel with significantly lower CO2 emissions, provided that innovative and integrated models are implemented, from the production of green electrons to the production of molecules.”
The companies did not disclose financial terms of the deal.
Source:Kallanish
