Brazil: SMS subsidiary focusses on hydrogen for green steel

Eletrobras, a Brazilian energy supplier, and SMS subsidiary Paul Wurth want to build a 10 MW hydrogen plant. They have reached an agreement on this. The planned plant is to supply Brazilian steelworks and thus contribute to the production of green steel. 

According to SMS group, a hydrogen plant is to be built "near the most important steel production centres in Brazil". The preliminary studies are to be finalised in the course of the year. The plant is expected to have 37 times the capacity of Eletrobras' existing demonstration platform for green hydrogen at the Itumbiara hydropower plant on the border between the states of Minas Gerais and Goiás. 

The signing of the letter of intent is based on a project that began two years ago with the signing of a confidentiality agreement between Eletrobras and Paul Wurth. The use of hydrogen for steel production was also analysed in several feasibility and concept studies. A "considerable demand potential" for green hydrogen existed at the location identified in this way. 

According to Paulo Pinheiro, Managing Director of Paul Wurth Brasil, the cooperation with Eletrobras is driving the "technological development of green hydrogen" and making its use more accessible. In April 2021, the plant manufacturer SMS acquired all shares in the Luxembourg-based mechanical engineering company Paul Wurth.