HYBRIT, a joint initiative in Sweden by the steelmaker SSAB, mining company LKAB, and energy provider Vattenfall, has successfully completed a hydrogen storage pilot and submitted findings to the Swedish Energy Agency. The results confirm that large-scale, fossil-free hydrogen storage is technically viable and could lower production costs by up to 40%.
Launched in 2016, HYBRIT aims to develop the world’s first fossil-free, ore-based steelmaking process using hydrogen. Its latest phase has been focused on hydrogen production and storage to support large-scale industrial operations.
Steel production accounts for around 7% to 9% of global carbon dioxide (CO2) emissions, largely due to reliance on coal in blast furnaces. Fossil-free hydrogen could eliminate nearly all CO2 emissions from the steelmaking process, potentially cutting over two tonnes of CO2 per tonne of steel produced, according to the International Energy Agency.
As part of the pilot, HYBRIT constructed a 100m³ steel-lined rock cavern storage facility in Svartöberget, Luleå, Sweden, next to its sponge iron production site. The facility underwent accelerated testing, simulating 50 years of operation, confirming its safety, functionality, and cost-effectiveness for large-scale hydrogen users.
Hydrogen storage is a key step toward industrial decarbonisation, enabling flexible hydrogen production aligned with electricity price fluctuations. The system allows surplus hydrogen to be stored when electricity prices are low and used when prices are high, potentially reducing variable operating costs by 25% to 40%.
“The results demonstrate that this technology enhances electricity system flexibility and provides a durable, safe storage solution,” said Mikael Nordlander, Director of Industry Decarbonisation at Vattenfall.
The Swedish Energy Agency co-financed 22% of the project, with the remainder funded by the owner companies. With positive results, HYBRIT will continue testing the facility until 2026 to refine the design for commercial-scale deployment.
