Swiss Steel Group achieves major milestone in steel production decarbonization. The EU-funded HYDREAMS project proves hydrogen can replace natural gas in thermal processes without compromising material quality. Three industrial facilities will demonstrate commercial viability by 2026.
Material Testing Confirms Technology Potential
Swiss Steel Group reports significant progress in climate-neutral steel production. The company successfully tested natural gas substitution with hydrogen in thermal steel treatment through the EU-supported HYDREAMS research project. Results published on August 15 demonstrate that 13 tested steel grades showed no structural changes or composition deterioration.
The initiative, running since April 2023, represents the industry's first systematic investigation of this scope. Researchers analyzed various furnace configurations – both heating and annealing furnaces – as well as different burner systems ranging from pulse to flame burners.
These activities align seamlessly with the company's sustainability strategy. In April 2024, subsidiary Ugitech forged a strategic alliance with hydrogen specialist Lhyfe. Both companies plan an electrolyzer facility at the French production site in Ugine with daily capacity reaching twelve tons.
Fuel Properties Under Investigation
Project leaders focus on critical differences between energy carriers. Hydrogen exhibits different flame velocities and radiation intensities compared to natural gas. Additionally, exhaust gas composition varies significantly – factors that can directly impact product quality and plant technology.
"Substituting natural gas with hydrogen in thermal processes remains under development and presents specific challenges," explains Laurent Sieye, Sustainability Manager at Ugitech. These include potential NOx emission increases and possible effects on steel quality and refractory material lifespan.
Industrial Testing in Full Swing
Three customized demonstration plants will advance commercialization efforts. Each demonstrator targets different heating processes and product categories: blooms, forging bars, and coils. DEMO 3 launched test operations in March 2025, with initial bloom trials beginning this summer. DEMO 1 and DEMO 2 will follow in 2026.
Research encompasses multiple development stages: from laboratory tests in pilot plants through CFD simulations and furnace modeling to industrial demonstration tests. Simultaneously, Ugitech prepares commercial hydrogen utilization at the Ugine site, which produces approximately 200,000 tons of steel annually. Green hydrogen deployment aims to save 16,000 tons of CO₂ per year.
Beyond technical insights, project partners develop comprehensive safety assessments, lifecycle analyses, and economic evaluations. Swiss Steel Group positions hydrogen technology as an alternative to electric heating, which faces technical limitations in certain applications. According to company data, the steel industry accounts for approximately eight percent of global CO₂ emissions.
