The European Commission has announced that it has approved €265 million state aid to support Sweden-based H2 Green Steel in constructing a large-scale green steel plant in Boden, Sweden. The steel plant will include the construction of one electrolyzer with a capacity of 690 MW, a direct reduction plant operating with renewable hydrogen, two electric arc furnaces, and cold rolling and finishing facilities.
The new facilities are expected to start operating in 2026 and produce an annual 2.4 million mt of green steel. The use of renewable energy for the whole manufacturing process will reduce greenhouse gases emissions by up to 87 percent compared to traditional steel manufacturing processes.
