Sweden-based H2 Green Steel (H2GS) located in the Boden-Luleå region has announced that it will build a large-scale steel fossil-free steel plant in the Norrbotten region in northern Sweden, targeting large European original equipment manufacturers (OEMs), to enable production of fossil-free steel at a leading cost position. H2GS aims to invest €2.5 billion and create 1,500 direct jobs in the Norrbotten region. The company’s production will begin in 2024 and by 2030 H2GS will have an annual production capacity of five million mt of high-quality steel.
H2GS’ source of inspiration is the HYBRIT project founded by Swedish specialty steel producer SSAB, Swedish iron ore producer LKAB and Swedish power company Vattenfall. The company looks forward to a close collaboration with the HYBRIT-founders, sharing the vision to position Sweden at the forefront of fossil-free steel production.
The Boden-Luleå region offers unique conditions for fossil-free steel production with access to abundant energy from renewable energy sources, high-quality iron ore and a large port in Luleå. The project will increase Swedish net export value by around SEK 30 billion ($3.62 billion).
“We want to accelerate the transformation of the European steel industry. Electrification was the first step in reducing carbon dioxide emissions from the transportation industry. The next step is to build vehicles from high-quality fossil-free steel,” Carl-Erik Lagercrantz, chairman of the board of H2GS, said.