The public-private project involves the construction of a pilot hydrogen plant at the company's plant in Gijon

Spain has officially launched the construction of a pilot hydrogen production plant for industrial needs as part of the public-private project Hydrogen Hub Asturias (H2Asturias) led by global steelmaker ArcelorMittal. This is reported by the local media outlet La Vozde Asturias.

The facility, called GasLab, will be built on the territory of the ArcelorMittal plant in Gijon. The plant will have a capacity of 1.2 MW. The unit will process all types of industrial gases, which expands the range of research that will be conducted on hydrogen recovery processes.

«The pilot plant is of strategic importance for the decarbonization and transformation of Asturias industry and is the first tangible step in the use of green hydrogen in industrial processes. GasLab will be able to test and accelerate technologies in industry, making this facility unique in Spain and the world,» comments Borja Sanchez, Minister of Science and Business of Spain.

The total budget of the project is €6.6 million, of which €4.7 million will be provided by the state. Construction is scheduled to be completed in three years.

In addition to ArcelorMittal, the H2Asturias consortium includes Idesa, Iturcemi, Magna Dea, H2Vector Energy Technologies, the University of Oviedo, the Idonial Foundation, and the Carbon Science and Technology Institute.

As a reminder, ArcelorMittal is actively working to decarbonize its steel production processes. In particular, the company expects to receive a €850 million grant from the French government for a DRI unit and two electric arc furnaces at its Dunkirk plant, €460 million from the Spanish government to replace two blast furnaces with a DRI and EAF unit at its Gijon plant, and a €280 million grant from Belgium for a DRI unit and two electric arc furnaces in Ghent.

ArcelorMittal also received a €55 million grant for a pilot H2-DRI plant in Hamburg, Germany. This will bring the total amount of subsidies planned for the company’s green steel production to €1.65 billion.

The decarbonization of the steel industry will remain a leading theme in 2024, according to Fastmarkets’ forecast. Adequate supplies of clean hydrogen and renewable energy at competitive prices will be crucial in this process.