SHS Group and Verso Energy Sign Groundbreaking Hydrogen Contract

The SHS - Stahl-Holding-Saar Group (SHS Group) with its shareholdings Dillinger (Aktien-Gesellschaft der Dillinger Hüttenwerke), Saarstahl (Saarstahl Aktiengesellschaft) and ROGESA (ROGESA Roheisen- und Rohstoffgesellschaft Saar mbH), have concluded a long-term contract with Verso Energy for the annual supply and purchase of at least 6,000 tons of “green” hydrogen. With the conclusion of the Franco-German contract, the Power4Steel steel decarbonization project has cleared another hurdle on the path to climate-friendly steel production. Verso Energy and the SHS Group have thus given the green light to the regional, cross-border hydrogen economy.

ROGESA launched a closed tender process in March 2024 for procurement of regionally produced “green” hydrogen. As a result of this regular tender, Verso Energy and ROGESA have agreed on an annual supply of at least 6,000 tons of hydrogen over a period of ten years starting in 2029.

Verso Energy will supply Saarland’s steel industry with hydrogen certified as Renewable Fuels of Non-Biological Origin (RFNBO). This certification guarantees that the hydrogen was produced using renewable electricity. Using these initial quantities of hydrogen, along with steel scrap and a new plant technology consisting of a direct reduction plant and electric arc furnace at the Dillingen site and an electric arc furnace at the Völklingen site, the SHS Group can achieve the targeted reduction of its carbon emissions by up to 55 percent by the early 2030s, in line with funding requirements.

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Verso Energy will produce the hydrogen with the Carling Hydrogen Next Generation (CarlHYng) project in Carling (France). In a first step, Verso Energy is planning to build an electrolyzer representing an investment of over 100M€, which will be powered by electricity from renewable sources. The hydrogen produced is fed into the Moselle-Saar Hydrogen Conversion (mosaHYc) pipeline network, transported to the Dillingen steel plant, and used there for the production of CO2-reduced steel.

The SHS Group laid crucial groundwork for the strategic expansion of the regional hydrogen economy when it commissioned the mosaHYc pipeline network in April 2024. It is being built by network operators Creos Deutschland Wasserstoff GmbH and NaTran Deutschland SA (formerly GRTgaz SA). The hydrogen required for “green” production in industrial plants near the border will be transported to the region via the Franco-German pipeline network. The SHS Group plans to use up to 120,000 tons of hydrogen per year in the final expansion stage, ultimately making it the largest customer in the region.

Stefan Rauber, Managing Director of SHS - Stahl-Holding-Saar and Chairman of the Board of Management of Saarstahl and Dillinger: “For Saarstahl and Dillinger, there is only one direction: forward! We are firmly committed to continuing on our path to climate-friendly steel production in Germany and here in Saarland. 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 decarbonization project. Dillinger and Saarstahl are progressing with the transformation as planned and will offer their customers a high-quality portfolio of CO2-reduced steel products.”

Jonathan Weber, Managing Director of SHS - Stahl-Holding-Saar and Member of the Board of Management of Saarstahl and Dillinger (Chief Transformation Officer): “We are confident that we have found a strong partner in Verso Energy to make our entry into hydrogen-based steel production for Saarstahl and Dillinger at the Saarland site a success. With this contract, we have secured the first quantities of hydrogen for the SHS Group and have thus achieved another milestone for our Power4Steel decarbonization project.”

Xavier Caïtucoli, President of Verso Energy: “The mission of Verso Energy is to achieve the decarbonization of what everyone thought was impossible to decarbonize. 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. This project confirms Verso Energy’s trajectory, as the company aims to become the European leader in the production of low-carbon molecules for industry and transport”.

Antoine Huard, CEO of Verso Energy: “We are proud of this partnership with SHS, one of the leading steel producers in Europe, and we are fully committed to making this project a reality. It will be one of the first green hydrogen production plants dedicated to the steel industry and, as such, will play a key role in decarbonizing this industrial sector in Europe. We are convinced that it is precisely this type of project that will help catalyze the transition towards a sovereign and decarbonized industry, creating value and sustainable jobs in Europe”.

Gitta Connemann, Parliamentary State Secretary to the Federal Minister for Economic Affairs and Energy: “This contract is a milestone – not only for the Power4Steel project but for the steel industry as a whole. SHS is taking an important step toward the future – especially for the hydrogen economy. Power4Steel shows: the steel industry is ready for change, is breaking new ground, and is investing in innovative technologies. We as the federal government are supporting this effort. We want a transformation together with the steel industry because our aim is to preserve our domestic industry. Production in Germany benefits not only the economy, location and jobs, but also the climate. To achieve this, companies need competitive framework conditions. This step is of great strategic importance – for the region and for the strength of German and European industry.”

Anke Rehlinger, Minister President of Saarland: “Today we are setting a milestone for the future of Saarland’s steel industry and our region. Steel from Saarland has a future – and step by step, this is now becoming a reality. The companies are securing the location for industry as well as thousands of jobs through this process. It is good that we are continuing to forge ahead with the development of the hydrogen economy in the Greater Region through our cross-border cooperation with Verso Energy, and as a result we are also fortifying the expansion of the European hydrogen network. In doing so, we are setting new standards throughout Europe.”

Jürgen Barke, Minister of Economic Affairs of Saarland: “Power4Steel is one of the biggest transformation projects in Europe. Coal has shaped our region for centuries – and now we are building the future with hydrogen. Saarland’s steel industry is taking the next big step with the contract between the SHS Group and Verso Energy. This German-French cooperation also sends a strong signal to Brussels and Berlin to ensure reliable framework conditions. As a result, we are securing jobs and value creation and paving the way to a climate-friendly future.”