Hydrogen Production: SSAB’s Near-Zero Emissions Steel Powers GE Vernova Wind Towers

SSAB, the Swedish pioneer in high-strength sustainable steel, unveiled the world’s first hydrogen-based steel that hits the IEA near-zero emissions benchmark (50–400 kg CO₂e per tonne). Made at its Montpelier, Iowa facility via the HYBRIT process—where hydrogen-reduced iron meets recycled scrap, fossil-free electricity and renewable natural gas—this SSAB Zero steel is bound for GE Vernova’s onshore wind towers. A First Movers Coalition member and partner to Scania (eyeing 100% hydrogen-produced steel by 2030), SSAB’s announcement feels like a breakthrough moment in industrial decarbonization and the shift to sustainable energy. And trust me, this is just the opening act for hydrogen-based steel.

Strategic Implications

Hitting the IEA’s threshold doesn’t just prove that hydrogen production and steelmaking tech have matured—it hands SSAB a coveted first-mover spot in a market starving for low-carbon materials. Considering steelmaking guzzles around 7% of global CO₂ emissions, big players like GE Vernova and Scania are scrambling to lock in near-zero-emission supply chains. By slotting this new steel into U.S. wind towers, GE Vernova boosts its renewable energy rollout and scores brownie points with investors and regulators. Meanwhile, SSAB’s role in the First Movers Coalition isn’t just for show—it’s a bold procurement play that tells competitors and policymakers industrial-scale hydrogen solutions are no longer on the drawing board but up and running.

This game-changer could also shake up steel pricing talks. Sure, green steel comes with a premium—green hydrogen costs are still around $4–8/kg, versus the $2–3/kg target—but early adopters win in the long run with budget predictability against bumpy carbon prices. Montpelier’s output might be modest today, but it paves the way for a ramp-up in Europe and North America. In regions pledging green materials, SSAB is now the partner to beat. That, in turn, is likely to spur more investment in electrolyzers and renewable power, fast-tracking the build-out of hydrogen infrastructure worldwide.

Historical Context

Traditionally, steel’s made in coal-fired blast furnaces, belching over 1.8 tonnes of CO₂ per tonne of steel. Back in 2016, SSAB, LKAB (iron ore) and Vattenfall (power) kicked off the HYBRIT initiative to swap coal for hydrogen. Fast-forward: a 2021 pilot plant churned out proof-of-concept fossil-free steel, but volumes were tiny. Now in 2025, Montpelier moves from pilot to commercial scale, earning the IEA’s stamp of approval. By clearing that 50–400 kg CO₂e benchmark, SSAB is setting new rules for carbon accounting and cementing hydrogen’s role in slicing coke out of iron reduction. With policymakers tightening emissions rules and rolling out carbon border taxes, low-carbon steel is fast becoming a strategic must-have—not just an eco-friendly tagline.

Technical Snapshot

At the heart of this breakthrough sits HYBRIT (Hydrogen Breakthrough Ironmaking Technology). Instead of coal, green hydrogen reduces iron ore pellets into sponge iron, kicking out only water vapor. Then the sponge iron gets melted down with recycled scrap, biocoal and renewable natural gas under fossil-free electricity. The result? SSAB Zero steel with cradle-to-gate emissions in that sweet 50–400 kg CO₂e/tonne window—way below the 1.8 t CO₂e from traditional steel.

• Green hydrogen: produced onsite or nearby, targeting costs under $3/kg.
• Energy inputs: 100% fossil-free electricity backed by renewable PPAs.
• Feedstock mix: about 70% hydrogen-reduced iron and 30% recycled scrap.

Right now, Montpelier’s daily output is just a fraction of its max capacity, following a phased ramp-up to nail down stability and cost efficiency.

Market Impact

Buyers today weigh low-carbon creds as heavily as price per tonne. SSAB just upped its game in the budding green steel market. With deals locked in with GE Vernova and forward contracts with Scania, SSAB is lining up anchor customers well ahead of rivals. Analysts at IDTechEx reckon green steel could grab 10% of global demand by 2030 if hydrogen costs halve. For OEMs and constructors, switching to green steel isn’t just PR—it’s a real hook for investors and a must for ESG compliance. SSAB’s initial volumes may seem small, but they’re setting a bar that’ll shape procurement rules in construction, automotive, and heavy machinery.

Scalability & Challenges

Don’t expect a flip-the-switch moment while green hydrogen sits at $4–8/kg—prices need to drop 40–60% to hit that sweet spot. Scaling up means massive electrolyzer projects and a beefy hydrogen infrastructure—pipelines, storage, you name it. Renewable power is the linchpin; Montpelier enjoys local wind and solar, but not every site has that perk. Industry vets say it could take a decade of steady investment before hydrogen-based steel truly competes on price with coke-fired steel. Still, Montpelier offers a live case study, giving policymakers and investors a playbook to de-risk a broader rollout.

Key Takeaways

• First-mover lead: SSAB’s steel meets the IEA near-zero threshold, grabbing a competitive edge.
• Strategic supply: Anchor customers GE Vernova (wind towers) and Scania (trucks by 2030) validate market demand.
• Tech proven: HYBRIT slashes emissions to sub-400 kg CO₂e/tonne, versus 1.8 t CO₂e for blast furnaces.
• Price gap: Green hydrogen costs must tumble 40–60% to close the green steel premium.
• Policy push: Carbon pricing and incentives are crucial for scaling hydrogen production and steel decarbonization.

As industrial decarbonization picks up pace, SSAB’s hydrogen-based steel milestone raises the bar. The next steps? Crank up supply, drive down hydrogen costs and build out the hydrogen infrastructure to make green steel the new normal—and rewrite the playbook for sustainable heavy industry.