Norwegian Hydrogen is set to supply green hydrogen to a green iron producer in Sweden, under a newly announced agreement.
Stockholm-based GreenIron plans to use green hydrogen as a reducing agent in its “fossil-free” green metals plant in Sandviken, Sweden, which is expected to start producing iron by the end of 2024.
Hydrogen will be supplied by Norwegian Hydrogen’s first electrolyser plant in Hellesylt, which opened in September – nearly 800km away from Sandviken.
The hydrogen producer has told H2 View that transport of the energy carrier will be undertaken by road transport in pressurised containers.
The Hellesylt plant produces around 1.3 tonnes of hydrogen per day from a 3MW electrolyser, with its primary offtake originally focused on maritime and land transport applications.
Read more: Norwegian Hydrogen’s Hellesylt hub produces first green molecules
In terms of volume being supplied, Norwegian Hydrogen declined to disclose specific numbers, but added, “There are very few similar sized real contracts in the Nordic green hydrogen industry in 2024 and 2025.”
However, Jens Berge, Norwegian Hydrogen CEO, said, “This contract aligns with our strategy to lead green hydrogen supply and to support industry clients like GreenIron who are acting on their commitment to reducing emissions.”
The company also expects GreenIron’s offtake to ramp-up overtime, which could require Norwegian Hydrogen to build additional plants.
“As GreenIron scales up production during 2025, the contracted hydrogen volumes will quickly ramp up to levels which require that we bring additional and dedicated hydrogen production capacity on stream,” explained Simen Skaare Eriksen, Chief Commercial Officer at Norwegian Hydrogen.
GreenIron’s plant in Sandviken will use hydrogen gas to react with oxygen in iron ore to produce reduced iron which can be processed into steel.
With plans of producing up to 28,000 tonnes of direct reduced iron (DRI) annually, the plant secured environmental permits earlier this year.
Read more: Will DRI be key to producing sustainable steel?
Ulrika Molander, Chief Operating Officer (COO) at GreenIron, said, “Collaboration with Norwegian Hydrogen secures our supply chain as we begin commercial production and prepare for scaling up volumes and expansion.”
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