Severstal invests in revolutionary new technology to produce low-carbon hydrogen

2022-02-01

Feb. 1, 2022 - PAO Severstal has announced an investment in Ekona Power Inc., a Canadian developer of low-carbon hydrogen production technology.

According to Ekona Power Inc., in addition to Severstal Ventures, American technology company Baker Hughes (headquarters: Houston, Texas), Japanese trading and investing company Mitsui (headquarters: Tokyo, Japan), and American oil company ConocoPhillips (headquarters: Houston, Texas) also took part in the financing round, in addition to other investors.

Ekona Power Inc. is a developer of hydrogen production technology based on a novel methane pyrolysis process. Under the process, natural gas is converted into hydrogen and solid carbon, significantly reducing CO2 emissions at a low production cost. Ekona’s fully commercialised hydrogen production plants will generate up to 100 thousand tons of hydrogen per year for under $1.5 per kilogram.

The steel industry has a higher potential than other carbon intensive industries for CO2 emissions reduction using hydrogen. However, the hydrogen used must have a low carbon footprint itself, and be cost-effective to produce, so as not to impose an additional burden on the cost of steel production.

Andrey Laptev, Director of Business Development and Corporate Venture projects at Severstal, commented:

“Decarbonisation is crucial for the future of the steel industry. Any long-term competitive advantage is now dependent on investments in advanced steel production methods. Ekona Power’s innovative technology will help us solve the problem of reducing CO2 emissions – not just for Severstal, but across the whole industry. The participation of Severstal Ventures in such a significant project once again confirms our commitment to reducing carbon dioxide emissions for our industry and combating climate change.”

Ilya Pavlov, Head of Hydrogen and Decarbonisation projects at Severstal, and Managing Director of Severstal Ventures, commented:

“Initiatives to develop and commercialise breakthrough technologies to produce low-carbon hydrogen are highly attractive to investors. Producing hydrogen by methane pyrolysis has a promising future, and Ekona Power Inc. is certainly a frontrunner among the companies developing technologies for this process. We have become a strategic investor and partner of Ekona Power Inc., demonstrating Severstal Ventures' leadership in the highly competitive field of hydrogen technology investments.”