Nel to supply 20-MW electrolyser for steel mill in Sweden

The Hofors steel mill in Sweden. Source: Ovako AB.

November 25 (Renewables Now) - Nel Hydrogen Electrolyser AS, part of Norwegian hydrogen company Nel ASA (OSE:NEL), will deliver a 20-MW alkaline electrolyser to European engineering steel producer Ovako AB.

Nel announced the purchase order on Thursday, saying that it has a contract value of about EUR 11 million (USD 12.3m). The equipment will be deployed at Ovako's existing plant in Hofors, Sweden, which is the first in the world to use hydrogen to heat steel prior to rolling and hot forming.

"In June we announced our collaboration with the Volvo Group, Hitachi Energy, H2 Green Steel and Nel Hydrogen with the purpose to invest in fossil-free hydrogen in Hofors. An investment that also got the support from the Swedish Energy Agency. We are now very pleased to have reached this important milestone of the project. The electrolyser technology will enable us to eliminate CO2 for heating steel before rolling," said Rickard Qvarfort, the president of business unit Hofors.

Delivery of the equipment is expected at the end of 2022, while the first hydrogen is to be produced in 2023.

Ovako is a unit of Sanyo Special Steel and part of the Nippon Steel Corporation Group.

(EUR 1.0 = USD 1.123)

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