Sanyo's Sustainable Steel Sojourn

Sanyo Special Steel'
Sanyo Special Steel'Image Source: Ovako


Sanyo Special Steel has launched a fossil-free hydrogen plant in Ovako, Sweden, marking one of Europe's largest hydrogen facilities. Additionally, its Indian subsidiary, SSMI, signed a renewable energy contract with Tata Power Renewable Energy, advancing carbon neutrality goals in special steel production.


Sanyo Special Steel's commitment to a greener future has never been clearer. With recent strides towards carbon neutrality, the company has further solidified its position as an industry leader in sustainable practices.

At the forefront of these initiatives is the recent inauguration of a fossil-free hydrogen plant in Ovako, Sweden. This significant development took place at the Hofors mills, where the company unveiled its hydrogen plant. Remarkably, this plant, dedicated to the electrolysis of water using fossil-free electricity, has been identified as one of Europe's largest with an impressive capacity of approximately 4,000 cubic meters. This venture was not a solitary effort. It was realized in collaboration with four local key players: Volvo Group, Hitachi Energy, H2 Green Steel, and Nel Hydrogen. Moreover, the project garnered financial backing from the Swedish Energy Agency.

This new hydrogen facility is not merely a technological marvel; it's a beacon of sustainability. By harnessing the power of hydrogen, the plant is poised to reduce CO₂ emissions by a staggering 50%, translating to a reduction of approximately 20,000 metric tons annually. This initiative is also a testament to the feasibility of heating steel using hydrogen, and there's an ambitious blueprint to roll out similar plants for each of the company's other units.

But the company's drive towards sustainability doesn't stop at Sweden's borders. In India, Sanyo Special Steel Manufacturing India Pvt. Ltd. (SSMI), a subsidiary of Sanyo Special Steel, has embarked on a green energy journey of its own. In September 2023, SSMI inked a contract to purchase approximately 62MM kWh of electricity generated solely from solar power. This contract, formed with Tata Power Renewable Energy, India's leading integrated power company, underscores SSMI's dedication to using renewable energy in special steel production. With this shift, the company expects to cut CO₂ emissions by an estimated 25%, a notable reduction of up to 42.5kt CO₂ annually.


Sanyo Special Steel's endeavors in both Sweden and India illuminate the company's unwavering commitment to eco-friendly practices. These steps, taken in partnership with global collaborators, exemplify how industry leaders can drive change and set benchmarks for sustainable operations.

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