Norwegian-based energy company Equinor, gas transmission system operator OGE, and thyssenkrupp Steel Europe have concluded their joint feasibility study on blue hydrogen for tk Steel’s mills.
The study finds that the decarbonised production and supply of “blue” hydrogen from natural gas to Germany’s largest steel plant in Duisburg is technically feasible, the partners say. Going forward, they intend to continue working on further details and build the basis for potential investment decisions.
According to tk Steel, blue hydrogen allows for significant CO2 reductions via a nearly climate-neutral steel production in the short- and mid-term. Other types of hydrogen, especially green, are expected not to be available in this period in sufficient quantities to meet demand, Kallanish notes.
The study’s premise has been the production of hydrogen from natural gas with permanent offshore storage of CO2 accrued in the process. The study has evaluated several options for sourcing and transport of hydrogen to Duisburg, as well as options for transport and storage of CO2.
Considering potential sites for hydrogen production, the study has confirmed three locations as principally suitable for a hydrogen plant: a potential production site on the Dutch coast in Eemshaven and two other potential sites on the German North Sea coast.
Among other things, the study concludes that economically viable transport via pipeline is possible with the cost of pipeline transport being minor compared to the cost of hydrogen production. Based on market forecasts by renowned external market analysts, the study estimates a price for blue hydrogen of approximately €2.1 ($2.55) per kg – corresponding to €58/MWh – based on an expected future and long-term average natural gas price of €23/MWh.