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Released May 08, 2023 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The company behind one of Europe's largest hydrogen-powered green steel plants has secured long term offtake deals amounting to almost 2 billion euro (US$2.1 billion).
Sweden's H2 Green Steel has signed a seven-year deal with Italian steel group Marcegaglia Steel worth 1.79 billion (US$1.96 billion) for the delivery of green steel from its planned plant in Boden, Sweden, to Marcegaglia's operations in southern Europe, U.K. and Poland. The family owned company, an early backer of H2's project, is a leading player in the European steel industry, with 37 steel plants across three continents covering flat and welded pipes insulation, construction, guardrail divisions, stainless steel long products, flat products, tubes and cold drawn bars and heavy plates.
Industrial Info is tracking the construction of the hydrogen-powered plant project in Boden, located in the north of the country. The goal is to start production in 2024 with an estimated production capacity of 2.5 million tonnes of high-quality steel, ramping up to 5 million tonnes by 2030. Traditional blast furnace-based technology will be replaced by direct reduction reactors using green hydrogen from an electrolyser plant powered by renewable energy. The facility is expected to reduce 95% of CO2 emissions compared to traditional steelmaking. For additional information, see November 2, 2022, article - H2 Green Steel Secures $3.4 Billion in Hydrogen Plant Funding.
"This is a milestone agreement for us at H2 Green Steel and a real celebration on our journey," said Henrik Henriksson, chief executive officer at H2 Green Steel. "Not only for the [deal's] value of about 1.79 billion euro, but also because of the quality player that Marcegaglia is in the steel industry. Marcegaglia have been true partners to H2 Green Steel. They challenge us every step of the way, but are incredible supporters of our team and our project."
Antonio Marcegaglia, chairman and chief executive officer at Marcegaglia Steel, added: "H2 Green Steel came in as a challenger in a traditional market a couple of years ago, and have proven with speed, perseverance, and a great team that they are a force to be reckoned with. We believe in the partnership approach in business, and we took this approach from day one with H2 Green Steel as they are a key player for us on our decarbonization journey which is essentially all about future-proofing our business."
Last month, H2 inked a deal with Steel Processing Midlands (SPM) in the U.K. for the delivery of green steel over a five year period. SPM is a privately owned steel and processing business operating in the automotive and construction industries, and the green steel will account for a quarter of its steel demand. The deal is estimated to be worth 125 million euro (US$137 million).
Nick Liggins, commercial director, SPM, said: "Green steel is undeniably the future. It is the biggest change this industry has seen in a century and the speed of change is faster than many expect. As the cost of emissions start to impact traditionally made steel, green steel will fast become commercially the better option of the two, as governments drive companies towards CO2 reductions. We choose to embark on this journey early and H2 Green Steel is the right match for us as they will offer the greenest steel at 195 kg CO2 emitted per tonne of steel produced."
Industrial Info is also tracking progress of the world's leading fossil-free steel project, HYBRIT, located in the same region of Sweden. The project has already produced its first green steel using a process based on direct reduction of iron ore using renewable energy and hydrogen gas. A key milestone was reached last year with the successful creation of a rock cavern storage facility for hydrogen. The pilot storage facility is understood to be the first of its kind in the world for storing fossil-free hydrogen gas. For additional information, see October 12, 2022, article - Green Steel Project Hits Hydrogen Storage Milestone.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Sweden's H2 Green Steel has signed a seven-year deal with Italian steel group Marcegaglia Steel worth 1.79 billion (US$1.96 billion) for the delivery of green steel from its planned plant in Boden, Sweden, to Marcegaglia's operations in southern Europe, U.K. and Poland. The family owned company, an early backer of H2's project, is a leading player in the European steel industry, with 37 steel plants across three continents covering flat and welded pipes insulation, construction, guardrail divisions, stainless steel long products, flat products, tubes and cold drawn bars and heavy plates.
Industrial Info is tracking the construction of the hydrogen-powered plant project in Boden, located in the north of the country. The goal is to start production in 2024 with an estimated production capacity of 2.5 million tonnes of high-quality steel, ramping up to 5 million tonnes by 2030. Traditional blast furnace-based technology will be replaced by direct reduction reactors using green hydrogen from an electrolyser plant powered by renewable energy. The facility is expected to reduce 95% of CO2 emissions compared to traditional steelmaking. For additional information, see November 2, 2022, article - H2 Green Steel Secures $3.4 Billion in Hydrogen Plant Funding.
"This is a milestone agreement for us at H2 Green Steel and a real celebration on our journey," said Henrik Henriksson, chief executive officer at H2 Green Steel. "Not only for the [deal's] value of about 1.79 billion euro, but also because of the quality player that Marcegaglia is in the steel industry. Marcegaglia have been true partners to H2 Green Steel. They challenge us every step of the way, but are incredible supporters of our team and our project."
Antonio Marcegaglia, chairman and chief executive officer at Marcegaglia Steel, added: "H2 Green Steel came in as a challenger in a traditional market a couple of years ago, and have proven with speed, perseverance, and a great team that they are a force to be reckoned with. We believe in the partnership approach in business, and we took this approach from day one with H2 Green Steel as they are a key player for us on our decarbonization journey which is essentially all about future-proofing our business."
Last month, H2 inked a deal with Steel Processing Midlands (SPM) in the U.K. for the delivery of green steel over a five year period. SPM is a privately owned steel and processing business operating in the automotive and construction industries, and the green steel will account for a quarter of its steel demand. The deal is estimated to be worth 125 million euro (US$137 million).
Nick Liggins, commercial director, SPM, said: "Green steel is undeniably the future. It is the biggest change this industry has seen in a century and the speed of change is faster than many expect. As the cost of emissions start to impact traditionally made steel, green steel will fast become commercially the better option of the two, as governments drive companies towards CO2 reductions. We choose to embark on this journey early and H2 Green Steel is the right match for us as they will offer the greenest steel at 195 kg CO2 emitted per tonne of steel produced."
Industrial Info is also tracking progress of the world's leading fossil-free steel project, HYBRIT, located in the same region of Sweden. The project has already produced its first green steel using a process based on direct reduction of iron ore using renewable energy and hydrogen gas. A key milestone was reached last year with the successful creation of a rock cavern storage facility for hydrogen. The pilot storage facility is understood to be the first of its kind in the world for storing fossil-free hydrogen gas. For additional information, see October 12, 2022, article - Green Steel Project Hits Hydrogen Storage Milestone.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
