The EU set up the Just Transition Fund (JTF) to help these regions who are likely to be hardest hit by the green transition. One JTF-funded project in Sweden is showing how the steel industry can reduce its carbon emissions with hydrogen technology.
The JTF is funded with nearly EUR 20 billion to give the regions most affected by the green transition the help they need to change to their economies, while minimising social and economic costs and remaining competitive. EU countries can transfer further funds to the JTF, which is expected to mobilise some EUR 30 billion in additional investment.
Investments through the JTF can cover training for workers and job-search assistance, installation of clean technologies and energy networks, and environmental remediation measures. Other areas of support include research and innovation and financing for SMEs or start-ups.
The Swedish example
In Sweden, the JTF has provided around EUR 156 million to aid the green transition in the steel industry in Norrbotten County, the metal industry in Västerbotten County and the mineral industry in Gotland County. The money will be used to introduce climate-smart and resource-efficient technologies, strengthen electricity networks, train employees and channel more resources into research, among other measures.
One JTF-backed project in Sweden is H2-Labs, which has received some EUR 7 million from the EU and the Swedish Agency for Economic and Regional Growth. Led by Luleå University of Technology (LTU), H2-Labs is developing a test bed that will explore potential solutions for the production of climate-neutral hydrogen. Located in Piteå, in Norrbotten County, the test bed is part of the university’s LTU Green Fuels pilot plant.
It is estimated that eliminating the use of fossil fuels in steel production and making the steel industry carbon neutral will help to significantly reduce overall carbon emissions. To achieve this, considerable quantities of hydrogen are needed, which entails large-scale research and testing. The project thus addresses a fundamental element of the green transition in Norrbotten County.
Replicating industrial conditions
Hydrogen pilot projects need to simulate the experience of setting up, operating, maintaining and optimising industrial plants and making use of hydrogen production side streams.
The research H2-Labs is conducting is intended to replicate the conditions found in steel plants, and to generate know-how of hydrogen production in a cold climate such as that of Norrbotten – Sweden’s northernmost county.
In implementing the project, the partners draw on the knowledge developed by LTU’s Centre for Hydrogen Energy Systems Sweden (CH2ESS) research initiative. Working with Swedish industry, the centre focuses on advancing hydrogen use in industrial processes and energy systems, in particular through experimental activities at LTU Green Fuels.
CH2ESS has formulated a coherent, integrated approach for the production, storage and transport of hydrogen, which includes an electric power supply system. H2-Labs will advance its work in this field. To produce hydrogen, the project will test systems based on electrolysis – using electricity to split water into hydrogen and oxygen. In addition, it will explore ways of saving and using heat generated by hydrogen production. Further research will look into making hydrogen production more energy- and cost-efficient.
‘This investment allows Luleå University of Technology to substantially strengthen the research and education initiative within the hydrogen gas domain together with our partners,’ said LTU Green Fuels site manager, Fredrik Granberg, in an article published by LTU.
‘The research and development at pilot level – around 1 MW – which will be carried out at LTU Green Fuels, will lead to increased knowledge for all parties involved.’
Transfer to other sectors
The significance of H2-Labs is not limited to the steel industry. Its outcomes could improve the sustainability of a number of other sectors. Along with LTU and LTU Green Fuels, H2-Labs has attracted the participation of partners such as local energy, heating and broadband supplier, PiteEnergi and steel maker, H2 Green Steel.
Marita Nilsson, technology lead for electrolyser systems at H2 Green Steel, explained to LTU: ‘Hydrogen will be crucial for several industries’ ability to shift to sustainable solutions. Sweden has good prerequisites to build knowledge and be a nation at the forefront of a growing hydrogen economy. The H2-Labs test bed at LTU Green Fuels in Piteå will contribute to this. For us at H2 Green Steel it constitutes a good platform for innovative and applied research about solutions that can be implemented in large-scale hydrogen plants.’
One of the many sectors interested in industrial-scale production of hydrogen through electrolysis – and in which the knowledge acquired through H2-Labs could be applied – is packaging. This interest led paper-based packaging manufacturer, Smurfit Kappa to join the project consortium.
Per Swärd, CEO of Smurfit Kappa’s Piteå paper mill, told LTU: ‘It is important for us to be part of the research and development of sustainable energy sources that we can benefit from in future. It is a unique opportunity for both Piteå and for us, with a pilot plant near our paper mill. We want to be involved in placing Piteå on the map, to be at the forefront of this development.’
To help ensure the widest possible uptake, the H2-Labs’ results will be disseminated nationally and internationally. They will be presented at international events and detailed in scientific journals. These efforts will help to ensure a green transition in steel and other industries, especially in cold climates.
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