Huge new hydrogen hub will power Spanish green steel
Spanish energy giant Iberdrola and Sweden's H2 Green Steel are to build a €2.3 billion green hydrogen plant with an installed capacity of 1,000 MW.
The exact location has yet to be decided but the plant will be "on the Iberian Peninsula" and will power a direct steel reduction furnace with the capacity to produce around 2 million tonnes of green steel per year, with a 95% reduction in CO2 emissions.
All the locations being considered for the plant will have access to renewable energy, the companies claim, as well as all the infrastructure necessary to operate a hydrogen-powered green steel business.
Read more: Green hydrogen now cheaper to produce than grey - ICIS report
"We are proud and delighted to partner with Iberdrola to scale up green steel manufacturing. Large-scale green hydrogen production will be essential for heavy industry's transition to more sustainable ways of operating," said Henrik Henriksson, CEO of H2 Green Steel
"By sharing the common goal of reducing emissions in hard-to-decarbonise industries, starting with steel in Europe, we are taking a truly global and innovative approach to green hydrogen production."
Aitor Moso, Iberdrola's director of deregulated business, said: "Green hydrogen will be a key technology in the decarbonisation of heavy industrial processes, such as steel production. Innovative projects such as this will help accelerate the commercialisation of larger and more sophisticated electrolysers, making green hydrogen more competitive."
"With access to low-cost renewable energy supplies and a highly skilled workforce, the Iberian Peninsula can play a key role in Europe taking a global lead in the development of this green technology."
The project will be financed through a combination of public funds, green project financing instruments and the companies' own funds. With a budget of approximately €2 billion, the large-scale production of green hydrogen is set to contribute to the transition of heavy industry towards sustainable operations.
The joint venture was created following contacts facilitated by the European CEO Alliance initiative, in which H2 Green Steel and Iberdrola have joined forces with other companies to achieve a zero-carbon future and a more resilient and sustainable Europe.
Read more: Steeling the future: Using hydrogen to make green steel
The CEO Alliance supports decarbonisation efforts by identifying potential partnerships, encouraging green investments and deploying projects that advance the development of sustainable economies and societies, in line with the European Green Deal.
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