Nel ASA’s Nel Hydrogen Electrolyser AS has received a purchase order for a 20MW alkaline water electrolyser from leading Swedish steel manufacturer Ovako, a leading European manufacturer of engineering steel. The electrolyser will be installed at Ovako’s existing plant in Hofors in Sweden, the first plant in the world to use hydrogen to heat steel prior to rolling and hot forming. The fossil-free hydrogen will replace the use of fossil propane gas currently used in heating furnaces at the site.The purchase order has a contract value of approximately EUR 11 million and the equipment is expected to be delivered at the end of 2022, with the first hydrogen production in 2023. The electrolyser will produce oxygen and hydrogen to be used in Ovako’s steel-heating process and is a major step towards zero-carbon emission steel production The conversion to hydrogen will enable Ovako to reduce its CO2 emissions for steel production in Hofors by 50 percent from already low levelsIn June Ovako announced our collaboration with the Volvo Group, Hitachi Energy, H2 Green Steel and Nel Hydrogen with the purpose to invest in fossil-free hydrogen in Hofors, an investment that also got the support from the Swedish Energy Agency.Ovako is a leading European manufacturer of engineering steel for customers in the bearing, transportation and manufacturing industries, and is a subsidiary of Sanyo Special Steel and part of the Nippon Steel Corporation Group. The company has geographical presence in Europe, North America and Asia, and a steel product line that includes niche products and customized solutions. The carbon footprint of Ovako’s steel products is a full 80 percent lower than the global average.