What is Hydrogen Fuel? Tosyalı’s Green Steel Vision

Hydrogen fuel is an energy carrier produced using various energy sources rather than a primary energy source readily available in nature. It can be utilized in various fields, ranging from electricity generation to industrial processes requiring high temperatures. In the steel industry, hydrogen is significant for reducing fossil fuels, producing direct reduced iron, and developing low-carbon production technologies. Tosyalı Holding is among the key players in this transformation with its renewable energy investments, studies on hydrogen utilization, and low-carbon steel goals.

What is Hydrogen Fuel and How is it Produced?

Although hydrogen is a common element in the universe, it mostly exists on Earth within compounds such as water or hydrocarbons. Therefore, it must be separated from its compounds to be used for energy purposes.
The most accurate answer to the question "What is hydrogen fuel?" should explain both the energy source from which hydrogen is produced and its form of use. The combustion of hydrogen or its use in a fuel cell releases energy. However, the total environmental impact depends on the method used to produce the hydrogen.

Grey Hydrogen

Grey hydrogen is mostly produced through steam reforming of natural gas. During the process of separating hydrogen from natural gas, carbon dioxide is formed, and this emission is released into the atmosphere.
Currently, a significant portion of the hydrogen used in the industry is produced using this method. Although the technology is mature and widespread, it does not align with green transformation goals due to its carbon intensity.

Blue Hydrogen

Blue hydrogen is also produced using the natural gas reforming method. The difference from grey hydrogen is that a portion of the carbon dioxide generated during the process is captured and stored.
Blue hydrogen can be considered a transition solution. However, since natural gas usage continues, methane leaks in the production chain, capture rate, and storage safety affect the total environmental performance.

Green Hydrogen

Green hydrogen is produced by separating water into hydrogen and oxygen through electrolysis, and the electricity used in this process is supplied from renewable sources.
A significant amount of electricity is required for electrolyzers to operate. Therefore, for green hydrogen to be truly low-carbon, the electricity used must come from solar, wind, or other renewable sources.
The connection between Tosyalı’s solar energy investments and hydrogen goals becomes important at this point. The increase in clean electricity production can support the energy needs of the infrastructure aimed at green hydrogen production or usage in the future.

Why is Hydrogen Important in Steel Production?

The steel industry is one of the sectors difficult to decarbonize due to high temperature and chemical reduction processes. Fossil fuels are used not only to generate energy but also to remove oxygen from iron ore.
Hydrogen has the potential to replace carbon-based reducing agents in appropriate technologies. When hydrogen reacts with oxygen in iron ore, water vapor is formed. Thus, when the hydrogen used is produced through low-carbon methods, the carbon footprint of steel production can be reduced.

The Role of Hydrogen in the DRI Process

Direct Reduced Iron is referred to by the acronym DRI. In this method, iron ore is not melted; instead, the oxygen within it is removed using reducing gases, converting it into metallic iron.
In traditional DRI plants, the reducing gas is mostly derived from natural gas. Increasing the hydrogen ratio or designing the system to operate on 100% hydrogen has the potential to significantly reduce process-related carbon dioxide emissions.
Only having appropriate reactor technology is not sufficient for hydrogen-based DRI production. A high volume of low-carbon hydrogen, reliable electricity infrastructure, a storage and transportation system, suitable iron ore quality, and electric arc furnace capacity are required.

Use of Hydrogen in High-Temperature Processes

Reheating furnaces, annealing lines, and various thermal processes in steel plants require high temperatures. Hydrogen can be used in some furnaces as a substitute for natural gas or mixed with natural gas, provided appropriate burners and safety infrastructure are in place.
However, the combustion speed, flame characteristics, and safety features of hydrogen differ from those of natural gas. The suitability of burners, piping, control, sealing, and safety equipment must be evaluated for use in existing systems.
Therefore, the goal of "using hydrogen as the primary fuel" requires not just fuel switching, but the transformation of plant infrastructure, energy supply, and process control together.

Tosyalı’s Hydrogen-Focused Green Steel Roadmap

Tosyalı does not base its green steel strategy on a single technology. Renewable energy, energy efficiency, scrap usage, DRI technologies, hydrogen studies, and circular economy practices are handled as complementary elements.
In Tosyalı Holding’s history, it is stated that the group continues its efforts toward using hydrogen in production as an alternative to fossil fuels. This statement shows hydrogen's place in Tosyalı’s long-term transformation agenda.

Hydrogen-Compatible DRI Technologies

DRI technology plays an important role in Tosyalı’s investments in Algeria. The new DRI infrastructure at Tosyalı Algérie has the capability to operate on 100% hydrogen.
"Capability to operate with hydrogen" does not mean "the plant is making commercial production using 100% hydrogen today." The capability indicates that the plant has the technical design to switch to this fuel when the necessary hydrogen supply and infrastructure are provided in the future.

R&D, Pilot Studies, and Goals in Turkey Facilities

Tosyalı is conducting R&D and pilot trials for hydrogen utilization in production.
This process demonstrates the strategic importance of hydrogen in Tosyalı’s transformation plan.

The Connection Between Renewable Energy and Green Hydrogen

The most important input for green hydrogen production is renewable electricity. Tosyalı is increasing its solar energy investments for self-consumption.
In 2025, a total of 1.2 GW capacity self-consumption solar power plant project was announced, and a contract was signed for the first 120 MWp section of the project. It is aimed to increase the installed solar energy power to approximately 1500 MWp.
These investments can contribute to meeting the electricity used in steel production from lower-carbon sources. At the same time, they can support the clean electricity infrastructure required for green hydrogen production via electrolysis in the future.
Although there is a strong relationship between renewable electricity production and hydrogen, it should not be forgotten that a solar energy investment does not automatically mean hydrogen is being produced. Electrolyzers, water sources, storage, and distribution infrastructure are also required.

Steel Products Related to Tosyalı’s Hydrogen Ecosystem

The hydrogen transformation does not only cover fuel switching in steel production. Pipeline, storage, and distribution infrastructure are also needed to transport hydrogen from production points to areas of use.

Low-Carbon Flat Steel Products

Tosyalı’s green steel approach aims to reduce carbon intensity in the production processes of flat and long steel products. Steel products produced by Tosyalı Demir Çelik and other group companies provide input to different supply chains, from construction to energy, and machinery to pipe production.
The combined use of hydrogen-produced DRI, renewable electricity, and electric arc furnace technologies is necessary to increase the share of steel products with a low carbon footprint.
For a product to be defined as low-carbon or green steel, the production facility, energy source, raw material structure, and product-based emission data must be taken into account.

Steel Pipe Demand for Hydrogen Distribution Networks

Reliable distribution networks must be established between production, storage, and consumption points for hydrogen to be used on a large scale. The mechanical behavior of steel pipes to be used in these networks in a hydrogen environment, weld quality, pressure resistance, and leak-tightness are important.
Tosçelik and Tosçelik Spiral offer steel inputs to energy and infrastructure projects with their wide range of pipe product groups. However, it should not be assumed that all steel pipes are suitable for transporting hydrogen directly.
The relevant project standard, pressure, diameter, wall thickness, steel grade, welding method, coating, and the risk of hydrogen embrittlement must be evaluated when selecting hydrogen pipes.

What Are the Advantages of Hydrogen Fuel?

The advantages of hydrogen fuel vary depending on the production method and the area of use.
The main advantages are as follows:

• It can provide lower direct carbon emissions compared to carbon-containing fuels at the point of use.
• It can offer an alternative in hard-to-abate sectors such as steel, chemical, and high-temperature processes.
• It can act as an energy carrier for storing renewable electricity and transporting it to different sectors.
• It can reduce the use of carbon-based reducing agents in the DRI process.
• It can create options for seasonal or long-term energy storage.
• Hydrogen infrastructure can create demand for new steel pipes and equipment.

For these advantages to be realized, hydrogen must be produced using low-carbon methods. When grey hydrogen is used, the total emission advantage may remain limited.

What Are the Disadvantages of Hydrogen Fuel?

There are technical, economic, and infrastructural challenges to the widespread adoption of hydrogen.

High Production Cost

The cost of green hydrogen depends on the installation cost of renewable electricity infrastructure, electrolyzer investment, operating hours, and scale. In high-volume sectors like steel production, the amount of hydrogen required can be very large.

Energy Losses

Losses occur during the conversion of electricity to hydrogen, compression or liquefaction of hydrogen, transportation, and conversion back to energy.
Difficulty in Storage and Transportation
Hydrogen has a low volumetric energy density. It can be stored in the form of compressed gas, liquid hydrogen, or chemical carriers. Each method requires additional energy, investment, and safety.

Safety and Leak-Tightness

Hydrogen can escape from some connections and seals due to its small molecular structure. Its flammability range is wide, and appropriate detection, ventilation, material selection, and operating procedures are required.

Need for Infrastructure

Production facilities, electrolyzers, storage systems, pipelines, and usage equipment must be built together. If only a single facility is hydrogen-compatible, it will not be sufficient for full transformation without sufficient hydrogen supply in its vicinity.

How Are Costs and Infrastructure Managed in Hydrogen-Based Steel Production?

Hydrogen-based steel production requires energy and supply planning as much as technology investment. Operating the electrolyzer at high capacity throughout the year can reduce the hydrogen cost. However, the variability of solar and wind production creates a need for storage or grid connection.
A phased approach can be used in the hydrogen transformation of facilities. Initially, natural gas-hydrogen mixtures, pilot burners, or limited use in certain processes can be tested. Then, the ratio can be increased as hydrogen supply and equipment infrastructure develop.
Another issue for steel producers is the demand for low-carbon products. For hydrogen investments to be economically sustainable, customer demand for low-carbon steel, carbon regulations, and green financing opportunities are important.

The Place of Hydrogen in Tosyalı’s Green Steel Approach

In Tosyalı’s green steel vision, hydrogen is one of the strategic tools evaluated along with renewable energy and advanced production technologies.
The group’s approach is shaped in these key areas:

• Investing in production technologies that can operate with hydrogen
• Conducting R&D and pilot studies for hydrogen utilization in Turkey facilities
• Increasing self-consumption electricity with solar energy
• Developing electric arc furnace and DRI-based production infrastructure
• Increasing the share of products with a low carbon footprint
• Developing steel solutions that can be used in hydrogen distribution infrastructure

Tosyalı’s current green transformation investments, hydrogen, and solar energy studies can be followed via the Tosyalı Holding media center.