H2 Green Steel (H2GS), a Swedish consortium that includes SMS Group and Scania, plans to build a 5 million tonnes/year steel plant in the Boden-Luleå, northern Sweden. A giga-scale green hydrogen plant will feed the steelmaking plant to produce the so-called green steel.
H2 Bulletin noted that the steel plant will initially install 2.5 million tonnes/year capacity, which will be brought online by 2024. The plant is expected to reach full capacity utilisation by 2026, producing flat steel targeting the European market. The steelmaking capacity will then be ramped up, reaching 5 million tonnes/year by 2030.
H2 Bulletin understands that the plant will be using an electric arc furnace, which will be fed by a DR reactor. The reactor is expected to be using high-quality DR iron ore pellets. A planned Giga scale electrolyser plant will supply green hydrogen to the DR reactor be used as a reducing-gas for processing iron pellets. The feedstock will then be sent to EAF for steelmaking. The plant will be using continuous casting to produce flat steel.
One of the inspirations behind the H2GS project is the HYBRIT project which SSAB, LKAB, and Vattenfall initiate.
Henrik Henriksson, currently CEO of Scania, will lead H2GS. He said, “The climate crisis is the biggest challenge of our time – and given the steel’s impact on other industries’ sustainable development, a rapid change of the steel industry is extremely important.”
Anders Williamsson, Executive Vice President, Head of Purchasing, Scania, said, “A Scania truck weighs about six tons, and five of those are steel, which today, unfortunately, is produced with a substantial carbon footprint.”
H2GS is in the process of closing its Series A equity financing of €50 million (US$ 60.8 million) from a select group of investors, including Vargas, Scania, Sms group, Bilstein Group, Eit InnoEnergy, Cristina Stenbeck, Daniel Ek, Altor Fund V, and Imas Foundation. Series B financing, which will be closed by Q4 2021, is expected to raise €2.5 billion (US$ 3 billion) through a combination of equity and green project financing.
H2 Bulletin noted that the steel plant would initially install 2.5 million tonnes/year of steelmaking capacity, planned for coming online by 2024. The plant is expected to reach full capacity utilisation by 2026, producing flat steel targeting the European market. The steelmaking capacity will then be ramped up, reaching 5 million tonnes/year by 2030.