Swiss Steel Group Advances Hydrogen Trials in Steel Processing

Swiss Steel Group is trialling hydrogen as a substitute for natural gas in thermal steel processing under the EU-funded HYDREAMS project. Launched in April 2023, HYDREAMS is the first large-scale programme in the sector to examine hydrogen use in both reheating and annealing furnaces. Early tests on 13 steel grades revealed no structural differences, suggesting hydrogen can replace natural gas without compromising quality.

The project is moving from laboratory and simulation studies to industrial demonstrators. DEMO 3 began operations in March 2025 with steel bloom trials planned this summer, while DEMO 1 and DEMO 2 are scheduled for 2026 to test forged bars and coils. The trials will analyse flame behaviour, heat transfer and exhaust gas composition while addressing risks such as higher NOx emissions and possible effects on refractory life. The HYDREAMS project aims to cut CO₂ emissions by 4.5Mtpa by 2032, with potential hydrogen deployment across 500 sites in 23 countries.

Ugitech, a Swiss Steel Group subsidiary, signed an MoU with hydrogen producer Lhyfe in April 2024 to build an electrolysis plant in Ugine, France, with a planned output of up to 12tpd. Once operational, this is expected to cut 16ktCO₂ annually at a site producing 200ktpa of steel. Hydrogen is seen as a viable solution where electrification of furnaces faces technical barriers, such as high-temperature resistance wear and poor heat distribution.