Ilya Pavlov, head of the Severstal decarbonization project, said in an interview with Kallanish that the Russian hydrogen market may be established in 2030, but everything will depend on production costs.

"For companies that want to develop and produce this kind of fossil fuel-free and steel output, the main task is capacity and quantity, because demand will increase significantly," he pointed out. "Future projects will require a lot of hydrogen; for example, a direct reduced iron plant with a production capacity of 1 million tons/year will require a 500MW electrolysis plant. This is a huge force, and it is not there yet."

“However, we are optimistic about a large number of such projects, especially in Europe, but this is a new production platform that will take 10-20 years to reach high levels of hydrogen production,” Pavlov observed. "The global goal is to achieve zero carbon. By 2050, this technology may play a leading role."

He predicts that although the world can produce about 80 million tons of green hydrogen-based steel per year by 2030, "this is only a drop in the ocean, especially for the demand for the steel industry." "However, step by step, this will significantly improve. "

Russia's goal is to occupy 20% of the hydrogen market under the basic scenario and produce 1 to 2 million tons/year, and even reach 7 million tons/year in 2035. This is an optimistic ambition. The country has large reserves of natural gas that can be used to produce hydrogen. "At present, Russia has no big plans to use electrolyzers, but it will improve in the future," Pavlov observed.

Earlier this month, Severstal signed a memorandum of cooperation with Novatek, Russia's largest independent natural gas producer, to develop hydrogen, alternative energy and greenhouse gas reduction technologies (see Kallanish passim). The two parties will consider launching a joint pilot project to use carbon capture carbon dioxide and storage technology to produce blue hydrogen from natural gas.

The two companies intend to jointly develop the capacity, necessary standards and engineering solutions for the production and supply of hydrogen transportation pipelines, turbines, hydrogen storage systems and transportation tanks. Given that the current cost of hydrogen is prohibitively high, disruptive technologies are needed to make hydrogen a viable fuel for steelmaking. Severstal said that the cost of low-carbon hydrogen should be US$1.5/kg or less.

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