World’s first large-scale fossil-free steel plant
A new industrial initiative in Sweden is looking set to become the world's first large-scale fossil-free steel plant. The H2 Green Steel (H2GS) project will produce steel based on a fossil-free manufacturing process targeting large European OEMs.
The plant will be located in the Norrbotten region in northern Sweden, an area that offers unique conditions for fossil-free steel production with ready access to cheap energy from renewable energy sources, high-quality iron ore, a large seaport at Luleå, and a cluster of world-leading expertise in metallurgy and steel production.
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The project also includes cheap renewable power, use of green hydrogen to process the iron, innovative downstream steel manufacturing, partnership with key players in the region, altogether delivering competitive decarbonised steel at scale.
The €2.5 billion green steel initiative will create 10,000 direct and indirect jobs. Large-scale production will start as early as 2024, and the annual production target of five million tonnes of steel is set to be reached by 2030.
Henrik Henriksson, currently CEO of Scania, will lead the company, which is backed by EIT InnoEnergy amongst others.
The global steel industry is one of the world’s largest emitters of carbon dioxide, representing approximately 7% of global CO2 emissions. Demand for fossil-free steel is growing substantially with strong interest across sectors including automotive, commercial vehicles, white goods, furniture, etc.
A major source of inspiration for the initiative is the groundbreaking HYBRIT project and its founders SSAB, LKAB, and Vattenfall. H2GS looks forward to a close collaboration with the HYBRIT-founders, sharing the vision to position Sweden at the forefront of fossil-free steel production.
Read more: HYBRIT hailed one of UN Climate Summit's most ambitious initiatives
The H2 Green Steel Initiative is the first flagship project of the European Green Hydrogen Acceleration Center (EGHAC), which was set up to serve as a key enabler of industrial value chains and cleantech innovation. Its aim is to develop an annual €100 billion green hydrogen economy by 2025 that could create half a million direct and indirect jobs across the green hydrogen value chain.
EIT InnoEnergy CEO, Diego Pavia said: “The H2 Green Steel initiative has the scale, ambition, innovative business model and implementation team to become a flagship of Europe’s position at the forefront of the transformation of energy-intensive industries. This case, which is replicable, is key to deliver on Europe’s climate neutrality pledges. Those are dimensions core to EIT InnoEnergy’s mission, and this Green Steel industrial project is another compelling example of EIT InnoEnergy’s strategic commitment to being a key enabler of the energy transition by developing strategic industrial value chains in Europe.”
“We’re extremely happy to once again partner with EIT InnoEnergy. Together, we will accelerate the decarbonisation of the steel industry, and kick-start the hydrogen economy. This will be crucial for reaching the EU climate goals,” said Carl-Erik Lagercrantz, Chairman of the Board of H2 Green Steel and Northvolt.
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