Spain-based engineering firm Sarralle has completed a green hydrogen combustion system at ArcelorMittal’s Olaberria plant, which is one of Europe’s most advanced steel production facilities.
The project is one of the first instances of green hydrogen and oxy-combustion technologies being used in steelmaking.
The system enables the reheating furnace in the rolling mill to operate using 100% green hydrogen instead of natural gas, fully eliminating CO₂ emissions from the combustion process.
Developed with Nippon Gases, the system replaces traditional air–natural gas burners with hydrogen-based oxy-fuel burners, significantly improving thermal efficiency and ensuring cleaner, more sustainable steel production. The combustion of hydrogen generates only water vapor.
As reheating furnaces are among the most energy-intensive systems in steel plants – consuming up to 80% of a facility’s fuel – the project’s success could mark a crucial step towards the decarbonisation of the steel sector, currently accounts for about 9% of global CO₂ emissions.
“This project … proves that green hydrogen combustion technology is already a reality and that decarbonising industrial processes is possible,” said Itsaso Auzmendi-Murua, Head of the Hydrogen Business Line at Sarralle.
Hydrogen-based green steel output could reach 46 million tonnes by 2035, according to a report from technology research firm IDTechEx.
It highlights how regulation, corporate climate targets, and pressure from sectors like automotive and construction are driving investment in low-carbon steelmaking. However, high hydrogen costs, infrastructure gaps and policy uncertainty risk slowing progress – and 46 million tonnes would only represent about 2.5% of annual steel production.
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