With a global energy system in rapid transformation from fossil fuels, hydrogen from zero-emission processes is one of few solutions to hard-to-abate emissions within industry. The Ovako hydrogen facility in Hofors, with a scrap-based Electric Arc Furnace process, was inaugurated in September 2023 making it the world’s first steel plant using hydrogen for heating. This project studies wider system benefits of the electrolyser such as power grid support, oxygen byproduct, providing hydrogen to external actors, and district heating. This is analysed both with current capacity and in regards to possible future development. Replacing fossil fuel with hydrogen produced by an atmospheric alkaline electrolyser is an indirect electrification with the potential to decrease green house gas emissions. Industry-wide electrification increases the demand for electricity, affecting all existing users. Therefore it is important that the benefits are spread wider than the steel plant by itself. System benefits and sector couplings such as enabling ancillary services to the grid, producing low-marginal cost hydrogen for hydrogen-powered trucks, and using waste heat for district heating, are important to ascertain system-wide improvements, and are studied in this project. Finally, a presentation of possible future work is included, with a focus on establishing a way towards a system demonstrator at the Ovako Hofors facility. Particularly, there is a wide potential for future studies of Electrolyser for grid support services and establishing a hub for hydrogen as fuel, but also many other interrelated research questions. The study is a collaboration between KTH, Ovako, Volvo Group and Hitachi Energy, funded by Vinnova.