Swedish steel producer Ovako has teamed up with the Volvo Group, Hitachi ABB Power Grids, H2 green Steel, and Nel Hydrogen to construct a hydrogen plant at Hofors, Sweden to produce carbon-neutral steel.
This will be the first project where steel is heated with hydrogen before rolling, enabling the company to reduce emissions significantly. Ovako has already reduced carbon emissions by 54pc since 2015, it said in a statement on Jun 22.
The company did not reveal the potential capacity of the plant but said that it plans to invest around $21mn in setting up this facility and the project is supported by the Swedish Energy Agency.
The companies involved in this joint venture believe that this initiative will also be useful for the transport industry mainly for long hauls and heavy freight travels.