Swiss Steel Group is advancing its decarbonisation plans by testing hydrogen as a substitute for natural gas in thermal steel processing through the EU-funded HYDREAMS project. The initiative examines hydrogen combustion’s effects on furnace systems and steel quality. Initial trials on 13 steel grades showed no structural changes or material loss.

Launched in April 2023, HYDREAMS is the first large-scale steel project studying hydrogen use in heating and annealing furnaces with pulse and flame burners. Swiss Steel Group aims to confirm results through three industrial demonstrators by 2026, with DEMO 3 already operational since March 2025. DEMO 1 and DEMO 2, focusing on additional product types, including forging ingots and coils, are scheduled to launch in 2026.