In a statement, SSAB said the facility, a rock cavern about 30 meters below ground, will allow for development of storage technology. Although they are starting small — the facility will be able to hold 100 cubic meters of gas — it will allow them to test the cost-effectiveness of injecting pressurized hydrogen into underground storage facilities. 

Company representatives said hydrogen storage will be an important component of the hydrogen value chain in steel manufacturing. 

“Storage provides the opportunity to vary demand for electricity and stabilize the energy system by producing hydrogen when there's a lot of electricity, for example in windy conditions, and to use stored hydrogen when the electricity system is under strain," said Andreas Regnell, HYBRIT’s board chairman. 

Martin Pei, SSAB’s technical director, echoed that comment.  

"By developing a method for hydrogen storage and securing access to fossil-free electricity, we're creating a value chain all the way out to customers where everything is fossil-free – from the mine to the electricity and to the finished steel. This is unique," he said.  

The project represents an investment of slightly more than SEK250 million (approximately US$29 million) and is to be operational next year.