Successful Completion of Large-Scale Fossil-Free Hydrogen Storage Pilot Project in Sweden

Large-scale storage of fossil-free hydrogen gas successfully proven

The HYBRIT pilot project for hydrogen gas storage has been successfully completed and reported to the Swedish Energy Agency. The outcomes demonstrate that it is technically feasible to store fossil-free hydrogen gas for the industrial production of fossil-free iron and steel. This advancement could also lead to a reduction of up to 40% in the variable operating costs of hydrogen production.

Launched in 2016 by SSAB, LKAB, and Vattenfall, the HYBRIT initiative aims to develop the world’s first fossil-free, ore-based iron and steelmaking process using renewable electricity and hydrogen gas. Following the production of fossil-free sponge iron for steel manufacturing, the project has now included results from the pilot study focused on fossil-free hydrogen gas production and storage.

The project has successfully designed and constructed a 100 m³ hydrogen storage facility utilizing steel-lined rock cavern technology in Svartöberget, adjacent to the sponge iron production pilot in Luleå, Sweden. The completed tests confirm that the technology supports a large-scale hydrogen user and could achieve savings of approximately 25-40% in the variable operating costs of hydrogen gas production.

The pilot storage facility has undergone accelerated mechanical testing, simulating approximately 50 years of operation, successfully demonstrating its safety, functionality, and performance. “The pilot project has been highly successful and has provided us with the results we anticipated. We have proven that this technology can enhance the flexibility of the electricity system while ensuring a long-lasting and secure design. Hydrogen gas storage is a crucial component in electrifying industrial processes and increasing the share of weather-dependent power. With the insights gained from this pilot project, the technology is now ready for scaling up,” stated Mikael Nordlander, Director of Industry Decarbonisation at Vattenfall’s Industrial Partnerships.

As industries increasingly transition to fossil-free processes using hydrogen derived from renewable electricity instead of fossil fuels, securing hydrogen supply becomes essential. The primary purpose of a hydrogen storage facility is to adjust hydrogen production in response to electricity market fluctuations. This means optimizing production costs by generating and storing excess hydrogen when electricity prices are low, and reducing production while utilizing stored hydrogen when prices rise.

“Hydrogen plays a pivotal role in LKAB’s strategy toward carbon-dioxide-free products and processes. Although we have yet to decide on hydrogen gas storage, the successful outcomes from the pilot provide us with a solid foundation as we evaluate the needs and opportunities for storage in conjunction with our planned sponge iron production facilities,” explained Jenny Greberg, Vice President of Technology at LKAB.

“The results from the HYBRIT pilot project indicate that large-scale storage of fossil-free hydrogen is both technically feasible and economically advantageous. With these innovative technologies, we can establish robust fossil-free value chains with the potential to significantly reduce the climate footprint of the iron and steel industry,” remarked Martin Pei, CTO at SSAB. Currently, the steel industry accounts for approximately 7% of global carbon dioxide emissions. The HYBRIT technology could enable SSAB to reduce carbon emissions by 10% in Sweden and 7% in Finland.

The Swedish Energy Agency has co-financed 22% of the hydrogen storage project, with the remaining funds provided by the owner companies. “It is gratifying that HYBRIT has successfully concluded another pilot program, this time focusing on underground hydrogen gas storage. The initiative has emphasized building expertise and generating valuable experience for the industrial application of this technology. The pilot facility tests in Luleå have confirmed the effectiveness of hydrogen gas storage using LRC technology. With the knowledge and experience gained by the team, we are now prepared to take the next step,” stated Gunilla Hyllander, General Manager at Hybrit Development AB.

Facts:

• The pilot storage facility has been operating intermittently with hydrogen gas since 2022, in campaigns lasting 3 to 6 weeks.
• Approximately 3,800 hours of operation have been achieved, with combined hydrogen gas production and storage demonstrating 94% availability.
• The project has successfully showcased the safety, functionality, and performance of the facility.
• The choice of sealing material for the rock cavity was a critical aspect of the project; the chosen steel material has proven resistant to hydrogen, with no leakage detected from the storage facility’s sealing layer.
• Accelerated mechanical tests have been conducted, simulating around 50 years of operation, confirming the technology’s readiness for industrialization.
• The pilot project illustrates that hydrogen gas storage can effectively support a large-scale hydrogen user, specifically a DRI plant in Luleå.
• Real-time optimization of the storage facility’s operations has been performed based on spot prices and intraday market trends, demonstrating savings of 26-31% in variable operating costs.
• Future simulations for the Swedish electricity market suggest potential savings of around 25-40% in variable operating costs once the first commercial plants are operational.
• The HYBRIT project has extended the pilot project for fossil-free hydrogen gas storage until 2026 to conduct additional tests aimed at enhancing conditions for the design of commercial hydrogen storage.