Hydrogen storage slashes the cost of grid-connected green H2 production by nearly half, reports steel consortium

Key Points

• A commercial power procurement test by Swedish green steel consortium Hybrit found that on-site hydrogen (H2) storage can reduce the cost of green hydrogen production by up to 40%.
• Hybrit, a collaboration between Swedish utility Vattenfall, mining group LKAB, and steel producer SSAB, used fossil-free electricity bought from the Nord Pool day-ahead and spot market to power 4.5 MW of electrolysers at its Luleå H2 storage pilot project. By optimizing H2 production to coincide with the lowest power prices during times of low demand or abundant renewable energy generation, they were able to deliver hydrogen steadily to SSAB while reducing costs by 25-40%.
• The 100-cubic-meter pilot facility is capable of storing around 100 MWh of electricity converted into green H2 pressurized up to 250 bar. The ability to match electrolyzer and power production on a monthly basis will be mandated by EU rules for green hydrogen production using grid power, with a requirement for “additional” electricity capacity less than three years old.