Iberdrola and H2 Green Steel Reveal Giant Hydrogen Project

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The company behind Sweden's largest planned fossil-free steel plant, H2 Green Steel, has joined forces with Spanish energy major Iberdrola (Bilbao) to build a giant 1-gigawatt (GW) plant to produce green hydrogen and steel.

The proposed 2.3 billion-euro (US$2.6 billion) plant will be located in either Spain or Portugal, with production expected to start in 2025/26. Powered by renewable energy from Iberdrola, an electrolyser will be used to separate hydrogen from water, which will in turn be used to power a direct reduction process (DRI) to produce 2 million tons of green iron annually. DRI production, including any downstream green steel production processes, will be owned and operated by H2 Green Steel. Going forward, the companies are looking to co-locate a green steel production facility capable of producing 2.5 million to 5 million tons of green flat steel per year.

"We are proud and thrilled to partner with Iberdrola to enable the increased production of Green Hydrogen and green iron," said Henrik Henriksson, chief executive officer of H2 Green Steel. "Large-scale green hydrogen production will be key to enable the transition of heavy industry towards sustainable operations. By working with a world-class partner, we can initiate our growth journey while reducing the technical risk in our Boden project. Iberdrola brings invaluable experience, technology and know-how that will be used to take our green steel projects to the next level."

Earlier this year, Industrial Info reported on H2 Green Steel's first planned project in the Boden region of Sweden. As part of a 2.5 billion-euro investment, the company will construct and install a 1 million-ton-per-year fossil-free steel producing plant, using an electric arc furnace (EAF) fed by green hydrogen. Green hydrogen will be produced at the proposed nearby 800-megawatt (MW) hydrogen electrolyzer plant. For additional information, see March 9, 2021, article--Sweden Unveils Plans for Largest Green Hydrogen Steel Plant.

Aitor Moso, Iberdrola's liberalized business director, commented: "Green hydrogen will be a critical technology in the decarbonization of heavy industrial processes such as the production of steel. Innovative projects like this will help to speed-up the commercialization of larger and more sophisticated electrolyzers, making green hydrogen more competitive. With access to abundant supplies of low-cost renewables, and a highly skilled workforce, the Iberian Peninsula can be central to Europe taking a global lead in the development of this new green technology."

Sweden is already leading the world in pioneering new ways of making fossil-free iron, steel and cement. In July, the HYBRIT pilot plant in Luleå announced production of the world's first hydrogen-reduced sponge iron. HYBRIT is a joint effort between steelmaker SSAB (NASDAQ OMX:SSAB A) (Stockholm, Sweden), Sweden's state-owned mining giant LKAB (Luleå) and energy company Vattenfall (Stockholm). Using hydrogen, the process eliminates around 90% of emissions compared to conventional steelmaking. The commercial-scale plant is set to go live in 2026 and will have an initial capacity of slightly more than 1 million tonnes per year of steel. This is the equivalent of 20% of LKAB's total processing capacity at Malmberget and almost half of the production capacity of SSAB's blast furnace in Luleå. For additional information, see July 14, 2021, article--First Sponge Iron Made with Hydrogen in Sweden.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.