1/28/2026
Press Release
Article

Nippon Gases advances hydrogen‑ready and low‑carbon steel production in the Basque and Iberian hubs with H‑ACERO 2

The continuation of this initiative, which the group joined in 2021, aims to contribute to climate neutrality in the steel industry using new technologies and strengthening its role within hydrogen steel production projects, supporting the transition of key European industrial regions where steel plants play a central role in regional economic development. This positioning reinforces the relevance of hydrogen‑ready technologies as a pathway to modernize and decarbonize steel production and reduce steel emissions.

The H‑ACERO 2 project, which continues the objectives of H‑ACERO 1, represents a decisive step towards transforming the steel industry into a NetZero sector through the intensive use of green hydrogen (H₂) and oxygen for oxy‑fuel combustion (O₂) in its production processes. In this way, the aim is to replace fossil fuels with clean energy sources, reduce steel CO₂ emissions, and enable decarbonization pathways across the broader Basque steel plant cluster. This contributes decisively to lowering the steel carbon footprint and advancing European hydrogen steel production.

 

 

Industrial Application: EAF Hydrogen‑Ready Prototypes, Hydrogen Steel Production and Green DRI

In this ambitious project, efforts have focused on advancing the field by developing hydrogen‑adapted electric arc furnace (EAF hydrogen‑ready) prototypes and exploring the use of green DRI as a sustainable raw material. These innovations support emerging models of green steel manufacturing and the adoption of H2 steel strategies across different steel plants — key to lowering carbon emissions from steel production.

In addition, key technological challenges have been addressed, such as the development of innovative refractory materials, the adaptation of oxy‑fuel burners capable of operating with H2 and O2, and the industrial validation of the use of hydrogen in critical stages of the steel process. This progress directly contributes to the reduction of CO2emissions from steel production

 

 

Alignment with EU Hydrogen Roadmap and Renewable Hydrogen Production Strategies

H‑ACERO 2 is fully aligned with the Basque Government’s strategy and the Horizon Europe plan and embracing the goal of achieving climate neutrality in the European Union by 2050. The initiative also resonates with broader efforts such as the green hydrogen coalition and promotes advances in renewable hydrogen production, essential to reducing steel production carbon emissions across Europe.

With a strategic timeline, this project represents a pioneering collective effort in Europe and serves as a roadmap to achieve the objectives set. Through this alliance, the group reaffirms its commitment to decarbonization and the adoption of best practices in the sector, contributing to regulatory preparedness and reinforcing competitiveness in sustainability‑driven markets, particularly those focused on minimizing the carbon footprint of steel.

 

 

Scope and Objectives for Decarbonizing Steel and Reducing Steel CO2Emissions

With the participation of 12 leading industrial companies and 5 technology centers, the project covers all key stages of the steelmaking process — offering a comprehensive steel process description that spans from melting in electric arc furnaces (EAF) to the preheating of ladles and tundishes, reheating furnaces, and the oxy‑fuel cutting process using O2.

It aims to drive the comprehensive decarbonization of the Basque steel sector through the development and validation of innovative industrial technologies, including hydrogen burners, steam‑resistant refractory materials, and furnace prototypes adapted for oxy‑fuel combustion. This integrated approach supports significant reductions in steel emissions and advances practical pathways to decarbonize steel manufacturing.

The project also involves a comparative and experimental study of green DRI use, with the goal of reducing emissions associated with raw materials, as well as the generation of technical and scientific knowledge through simulations, industrial‑scale testing, and hydrogen assessment tools — key to progressing towards fully sustainable hydrogen steel production and lowering carbon emissions from steel production.