24 Feb The north of Sweden will soon be a Valhalla for green steel
In the north of Sweden (near Boden) there will be a factory to produce 5 million tonnes of ‘green steel’ per year by 2030. This steel, made using sustainably generated hydrogen, should become the future for the Swedish steel industry.
The initiators behind H2 Green Steel announced their plans yesterday. The steelworks is to become the largest green steel producer in the world. The hydrogen needed for the high temperatures in the steelmaking process is made with sustainable electricity, generated with wind and hydropower that is abundant in the region. The iron ore mines are also nearby, so the transport of raw materials emits less CO2.
2.5 billion euros
H2 Green Steel is a Swedish collaboration. The main investor is Vargas, an investment company that previously invested in a Swedish battery maker. But carmaker Scania is also joining in, and spotify’s founder is investing in the green plan. A total of EUR 2.5 billion is involved in the project.
Read also: Swedish pilot plant for hydrogen steel
Green steel is a dream for Europe. At present, the steel industry emits as much CO2 as half of the European fleet. However, greening is difficult, because making steel requires very high temperatures, which are not feasible with (green) electricity. However, hydrogen can cause temperatures like this, and by generating this fuel green you make the process more sustainable.
H2 Green Steel says another Swedish project, HYBRIT from steel manufacturer SSAB, was a great inspiration for this project. But SSAB doesn’t expect to be able to produce fossil-free steel until between 2030 and 2040, so H2 Green Steel can deter the other steelmaker. However, there are still a lot of questions about the finances and costs and therefore the competitiveness of sustainable steel. It is also questionable whether the technology is far enough away to apply on this scale.