U.S. Steel, Equinor and Shell announce partnership to explore clean energy opportunities in Appalachia region

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Pittsburgh-based U.S. Steel Corporation announced this week plans to join Equinor US Holdings Inc and Shell US Gas & Power LLC in a non-exclusive Cooperation Agreement to advance a collaborative clean energy hub in the Ohio, West Virginia, and Pennsylvania region.

The companies said the hub would focus on decarbonization opportunities featuring carbon capture utilization and storage (CCUS), as well as hydrogen production and utilization. The hub’s development and infrastructure would create jobs, stimulate economic growth and help reduce carbon emissions, the companies said.

“Establishing a low carbon hub in this region could have a profound impact on both the climate and the economy, creating sustainable jobs that will support families for many years to come,” says Grete Tveit, SVP Equinor Low Carbon Solutions. “For 14 years, we have been engaged and investing in this region, and our significant equity gas production in the Appalachia region has proved to be an important low carbon asset in our portfolio. In collaboration with partners and the local community, we’re proud to advance this initiative and America’s net zero future.”

The regional CCUS and hydrogen hub aligns with the project partners’ goal of reaching net-zero emissions by 2050. Equinor and Shell will jointly apply for U.S. Department of Energy funding designated for the creation of regional clean energy hubs to support the hub’s development. U.S. Steel said it will evaluate its role in the hub, including as a possible funding participant, customer, supplier, or partner.

The companies said the region’s abundance of low carbon gas, robust industrial sector, and skilled workforce make the tri-state region a prime location for a potential hub. Equinor and Shell said they are uniquely positioned to help develop the regional hub, while U.S. Steel said that as a historic innovator and leader in the energy efficient production of steel, it is also in a unique position to add to the partnership.

“U.S. Steel is investing significant resources to achieve the sustainability goals in our Best for All strategy, and we know we cannot do it all alone. Successfully addressing the climate crisis requires public and private collaborations,” said Richard L. Fruehauf, U.S. Steel’s Chief Strategy & Sustainability Officer. “We cannot —and will not —stand still, and this agreement is another effort to advance profitable, sustainable steel solutions for people and the planet.”