H2 Green Steel – a company based in the north of Sweden on a mission to produce fossil-free steel – has signed a multi-billion-dollar agreement with German company Thyssenkrupp Nucera for the construction of one of the world’s largest electrolysis plants.
In a few years, H2 Green Steel expects to produce fossil-free steel in a new steel mill in Boden in the north of Sweden. This will be done by manufacturing the iron sponge using hydrogen gas. The electrolyser that will be built splits water into hydrogen and oxygen using electricity.
The electrolysis plant in Boden will have a capacity of more than 700MW; many times larger than most electrolysis installations today.
The benefit, in this case, is that the hydrogen will be used as a direct input. This means that it does not need to be transported or stored, which means that an amount of the energy content is lost.
– This is the most efficient plant you can get on the market, so it has high efficiency. Through the software, it will improve and get better every year, says Henrik Henriksson, CEO at H2 Green Steel to TT news agency.
The work leading up to the signing of the contract was enabled through support from Sweden’s Industrial Leap programme, led by the Swedish Energy Agency.
Scania places first green steel order
At the same time, Swedish truck manufacturer Scania has placed its first order of green steel to the company. The initial contract with H2 Green Steel will provide Scania with sustainably produced steel for building its trucks. Production will begin at H2 Green Steel’s new plant Boden in 2025 and expected deliveries of the sustainable material set for 2027.