• Hydrogen use in steel production still requires carbon products within the manufacturing process.
• Hycamite has joined a €17 million research project aimed at advancing the entire steel production value chain.
• Hycamite produces hydrogen and carbon products from methane through a zero-emissions process.

Hycamite, a producer of emission-free hydrogen and high-quality carbon materials, has joined a €17 million follow-on research project aimed at transforming the steel industry. The new Future Sustainable Electric Steel Mill (FutSteel) project, led by the University of Oulu and SSAB will develop the entire steel production chain, combining electricity-based electric arc furnace technology with modernised hot rolling processes.

Traditional, coal-based blast furnace production generates substantial emissions, driving a shift toward electricity-driven processes that use recycled steel and hydrogen. Hycamite is contributing to research efforts focused on integrating the production of hydrogen and high-quality carbon materials directly into steelmaking.

“When hydrogen is produced from methane using an emission-free process, production costs can be significantly reduced, and hydrogen can be delivered quickly in the large volumes required by the steel industry,” said Matti Malkamäki, Chief Executive Officer (CEO) of Hycamite.

“There continues to be a need for emission-free carbon products in the production of low-CO2 emission steel,” added Niina Grönqvist, Head of Carbon Products at Hycamite. “Carbon is still required for slag foaming in electric arc furnaces and for alloying.”

Integrating steel production with methane utilization also offers additional advantages.

“Hycamite’s technology requires, in principle, only about one-eighth of the energy used in electrolysis to produce hydrogen, and much of that energy can be sourced from excess heat generated by the steel plant,” said Laura Rahikka, Chief Operating Officer (COO) at Hycamite.

The FutSteel project develops a model in which electric arc furnace (EAF) technology is integrated into the existing hot rolling production chain and explores how electric steelmaking can be combined with modern rolling processes powered by fossil-free energy. The research also focuses on maintaining steel quality and adapting low-carbon production methods to the manufacture of advanced specialty steels. Hycamite previously participated in the precursor research project, Towards Fossil-Free Steel Phase 2 (FFS2).

The steel industry accounts for approximately 7% of global greenhouse gas emissions, making its transition to electric and hydrogen-based production a critical step in decarbonization.

The project is scheduled to launch in June 2026 and will run for three years. The research partners in the FutSteel collaboration are the University of Oulu, VTT and Åbo Akademi, and the industrial partners include SSAB, Coolbrook, Ovako, Hycamite, Otanmäki Mine, Strategic Resources, Titanor, Carbo Culture, Convion and Nordkalk.

Hycamite’s proprietary methane (CH₄) splitting technology enables the production of low-carbon hydrogen (H₂) and high-value carbon materials without carbon dioxide (CO₂) emissions, supporting the decarbonization of industrial processes. The company developing methane pyrolysis technology continues to strengthen its position as a provider of low-carbon hydrogen and critical carbon materials for global industries.