How Hungary Can Utilize Green Hydrogen for Steelmaking: Insights from Germany
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The global pursuit of decarbonization has positioned green hydrogen as a cornerstone of sustainable industrial transformation, particularly in hard-to-abate sectors such as steel production. Green hydrogen, generated via electrolysis powered by renewable energy, offers a zero-emission alternative to fossil fuels and is central to climate strategies across the EU. However, scaling up its use requires addressing significant logistical, economic, and technical challenges in transport, storage, and supply chain integration. This thesis explores the sustainability and practicality of green hydrogen logistics in steelmaking, drawing insights from innovative initiatives in Germany and Sweden, particularly the HYBRIT project, and examining their relevance to Hungary's industrial landscape. A techno-economic analysis assesses the Levelized Cost of Hydrogen (LCOH) in both Germany and Hungary, pinpointing essential cost factors like electricity rates, electrolyzer performance, and infrastructure expenditures. Additionally, a streamlined life cycle assessment evaluates the potential carbon emissions reductions that can be achieved through the adoption of green hydrogen in steel production. The research examines hydrogen storage techniques, including compressed gas, liquid hydrogen (LH₂), and liquid organic hydrogen carriers (LOHCs), alongside transport methods like pipelines and cryogenic trucking. It evaluates their scalability, efficiency, and safety. Results suggest that while LOHCs and pipelines present good options for long-distance transport, LH₂ brings technical and economic challenges because of its cryogenic needs. The analysis emphasizes compressed gas as a cost-effective temporary solution, particularly in the initial stages of infrastructure development. Ultimately, the thesis provides tailored recommendations for Hungary, advocating policy incentives, infrastructure planning, and industrial collaboration to establish a cost-effective, low-carbon hydrogen supply chain. The research contributes to the discourse on industrial decarbonization by outlining a feasible path for integrating green hydrogen into steelmaking, thereby supporting Hungary's energy transition goals and aligning with broader EU climate targets.