Making hydrogen work: The path to decarbonising Sheffield steel

Earlier this year, we celebrated the completion of a project titled Hydrogen Decarbonisation of Sheffield Steel – or HYDESS – a consortium-led initiative that brought together industry leaders, local manufacturers, and academic experts including E.ON, the University of Sheffield, Sheffield Forgemasters, Chesterfield Special Cylinders, and Glass Futures with the aim of reducing CO2 emissions in the steel industry. 

Supported by the Industrial Hydrogen Accelerator programme, the project focussed on speeding up the adoption of hydrogen as a clean energy source in industrial applications – especially steel production – as a means of reducing the environmental impacts of industry and improving national energy security. This is because hydrogen can, in principle, be produced using electricity derived from renewable or low carbon energy sources in the UK, and could be integrated into existing industrial processes such as steel production. 

Planning ahead for hydrogen 

Cutting a path to decarbonised steel production through switching to hydrogen meant the project had to establish objectives in four key areas. These were: 

Technological and economic feasibility

Ensuring that switching from natural gas to hydrogen in a leading UK steel manufacturer's furnaces would be possible and sustainable. 

Knowledge enhancement

Ensuring that partners in the HYDESS project gained a greater understanding of the requirements and challenges to designing, implementing, and delivering an end-to-end hydrogen solution. 

Risk mitigation and business case development

Developing the full picture needed to take risk out of the fuel switching process and instil confidence in future investment. 

Network expansion

Building new commercial relationships between partners and working towards a wider network of other related industries. 

In following these objectives, the project found that fuel mixes including hydrogen can indeed perform as well as natural gas, existing infrastructure can be adapted for hydrogen use, feasible end-to-end hydrogen solutions can be both designed and implemented, potential risks can be mitigated through planning, and, with appropriate support, a fuel switch could be commercially viable. The project also found a high interest in hydrogen both within the steel industry and other manufacturers across Sheffield. In fact, the city’s demand for hydrogen was found to exceed projected supply. 

Making hydrogen happen 

The goal now is to make the hydrogen decarbonisation of Sheffield steel a reality in 2026, and while we believe this is possible there are challenges we must overcome to get there. For instance, we must ensure constant attention and flexibility around new technological advances to make sure no projects are left behind, begin procurement as soon as possible for equipment such as electrolysers and compressors to meet future targets, and secure investment and grants to get projects up and running. 

Crucially, there is also the possibility that hydrogen may initially be more expensive than natural gas. While this difference is relatively normal for such a radical transition and is likely to decrease in time, government subsidies would help to reduce any impact on consumers and thereby maintain support for the transition while hydrogen production scales up. 

At the same time, it may also be helpful for policymakers to consider potential tax incentives, grants, and other ways of supporting a burgeoning hydrogen industry in the UK – one that could make the most of growing renewable generation by storing more energy in hydrogen, reduce emissions from burning fossil fuels, and help to revolutionise British manufacturing by decarbonising some of our oldest and most valued industries. 

To find out more about HYDESS, and the Gill Furniss MP’s visit to the Blackburn Meadows site in Sheffield where the project was cantered, read: Gill Furniss MP visits Blackburn Meadows, celebrating next step towards decarbonising Sheffield steel