Steel accounts for 31% of planned clean hydrogen end-use demand from electrolysis projects currently under construction in Europe, Kallanish finds from a new report by trade body Hydrogen Europe.
A total of 3.7 gigawatts of electrolytic capacity is now under construction, with refineries constituting 54% of the end-use demand, followed by clean steel, notes the Clean Hydrogen Monitor 2026 report. Of the total capacity under construction, 78% is concentrated in just five countries: Germany, Sweden, Spain, the Netherlands, and France.
Within steel, demand is largely driven by a single project, Stegra’s Boden green steel plant in Sweden, which accounts for around 20% of the total production under construction. The prospective steelmaker installed the final module of the 740-megawatt electrolyser in April. The plant is designed to produce up to 5 million tonnes/year of green steel by 2030. However, Stegra last month flagged additional capital requirements to complete the project, as estimated costs soared.
Hydrogen demand in industry is currently dedicated mostly to fertiliser and chemical products, the trade body points out. “Under the Industrial Accelerator Act, the European Commission has proposed the creation of lead markets for clean steel, cement, and aluminium, which could strengthen the business case of green products and support investment into hydrogen-based steelmaking,” it notes.
Last month, Hydrogen Council said that while clean hydrogen remains a key decarbonisation solution for steelmaking, near-term deployment is favouring alternative technologies. Its annual report found steel accounts for just 5% of binding clean hydrogen offtake agreements globally.
