The partnership entails cooperation between the companies to assess the feasibility of renewable hydrogen production in Brazil, aiming to promote decarbonization in the steel industry's industrial processes.

On Tuesday, March 12, Eletrobras, the foremost electric power company in Latin America, and Paul Wurth, a brand of the SMS group, officially entered into a Memorandum of Understanding (MoU) to collaborate in the renewable hydrogen (H₂) production and use in industrial processes in Brazil.

A 10 MW plant for green H₂ and O₂ production will be realized in the neighbourhood of a steel plant and the studies for installation are expected to conclude in one year. Once completed, the plant's capacity will be 37 times greater than Eletrobras' Renewable Hydrogen Technology Development and Demonstration Platform located at the Itumbiara Hydroelectric Power Plant, on the border between Minas Gerais and Goiás.

The partnership forged between Eletrobras and the SMS group embodies the synergy between the strengths of both entities. Eletrobras, renowned for its expertise in clean electricity generation with 97 percent of green energy matrix, joins forces with the solid 150-year track record of the SMS group, specialized in providing solutions for the metals industry. With the strategic incorporation of Paul Wurth, the SMS group has emerged as a forerunner in the development of green solutions.

“Eletrobras has been advancing towards its goal of providing customers with decarbonization tools for their production, with green hydrogen now complementing hydroelectric generation in delivering clean energy. Our partnership is fully aligned with our Net Zero targets and the pursuit of new business opportunities, all while maintaining a steadfast commitment to environmental and social responsibility,” emphasized Vice President of Commercialization and Energy Solutions, Ítalo de Freitas.

“The SMS group is committed to providing sustainable solutions on a global and national scale. The cooperation with Eletrobras represents a significant step in this direction. By combining Eletrobras' remarkable expertise in clean energy and extensive reach with our technological know-how, we are not only advancing in the development of renewable hydrogen but also making its use more accessible. For this reason, we have determined that the construction of the plant would be in a strategic location, adjacent to major industrial plants. This decision aims to streamline the transportation and efficient utilization of renewable hydrogen, which initially will replace natural gas in industrial processes. On a larger scale, it could serve as an alternative to various fossil fuels currently in use,” stated Paulo Pinheiro, Managing Director of Paul Wurth Brasil.

Decarbonization Technologies for the Metallurgical Industry

The signing of this memorandum is the culmination of a project initiated two years ago, marked by the signing of a Confidentiality Agreement between Eletrobras and Paul Wurth, a brand of the SMS group. This agreement aimed to align efforts in seeking environmentally sustainable solutions for the metals industry, with a focus on decarbonizing the steel industry through the use of renewable hydrogen.

This commitment has triggered a series of feasibility and conceptual engineering studies, resulting in the current outlook of installing a renewable hydrogen production plant close of the main steelmaking hubs in the country, presenting a significant potential demand for green H₂.

SMS group is renowned worldwide for its future-oriented technologies and outstanding service for the metals industry. The company applies its 150 years of experience and its digital know-how to provide the industry continuously with innovative products and processes – even beyond its core business – and generates worldwide sales of around 3.1 billion euros. SMS is the right partner for challenging projects, and supports its customers throughout the lifecycle of their plants, enabling profitable and resource-efficient value creation chains. Paving the way for a carbon-neutral and sustainable metals industry is the company’s stated goal. As a global player with German roots, SMS takes responsibility for its 14,400 employees.