The European Commission has announced €265m ($284m) will be made available for H2 Green Steel to develop a large-scale green steel plant.
The facility, located in Boden, Sweden, will incorporate a 690MW electrolyser, a direct reduction plant operating with renewable hydrogen, two electric arc furnaces, and cold rolling and finishing facilities.
H2 View understands that these installations will begin operating in 2026 and are expected to produce 2.4 million tonnes of green steel per year.
The €265m will be partially funded through the Recovery and Resilience Facility (RRF) following the Commission’s positive assessment of the Swedish Recovery and Resilience Plan, taking the total investment to more than €500m ($536m).
The €6bn ($6.4bn) project will be primarily financed by private investment but has also been selected for support under the EU Innovation Fund, with funding received from the European Investment Bank.
Read more:H2 Green Steel signs €4.2bn debt financing agreements for Boden plant
One of the reasons the Commission agreed to support the project was due to its alignment with key EU policy initiatives, such as the European Green Deal and the REPowerEU Plan.
“This €265m Swedish measure will support the establishment of Europe’s first large-scale steel plant based entirely on hydrogen from renewable sources,” explained Margrethe Vestager, Executive Vice-President in Charge of Competition Policy.
“This plant will also host one of the largest electrolysers in the world. Reducing the climate impact of steelmaking is important for the achievement of the EU’s target of climate neutrality by 2050. At the same time, we ensure competition is not distorted.”
Speaking at the World Hydrogen Summit last month (May), an H2 Green Steel Executive revealed the company is working on four other hydrogen-based steel production projects in the Americas and Europe.
Read more:H2 Green Steel is working on four more hydrogen-based steel plants
Kasja Ryttberg-Wallgren, Executive Vice-President, Growth & Hydrogen Business said that H2 Green Steel is already conducting pre-front-end engineering and design (FEED) and FEED studies on four plants in Quebec, Texas, Brazil and Portugal.
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