H2 Green Steel and Hydro Havrand have signed an agreement to explore opportunities for developing new large-scale green hydrogen production facilities.
Under the agreement, the companies will explore the possibility of producing green hydrogen for off-takers in the Nordics and Brazil.
Replacing natural gas and other fossil fuels with hydrogen made from renewable electricity is the key to reducing CO2 emissions in several industrial processes. The two companies aim to cut emissions and create sustainable jobs by investing in hydrogen production.
The agreement, in the shape of a Memorandum of Understanding, covers:
- Investigating opportunities in Brazil: The companies are looking into possibilities for a green field project for the production of green hydrogen. If realised, the hydrogen production facility will enable approximately 5 million tonnes of green steel through direct iron reduction in a plant owned by H2 Green Steel, abating approximately 9,5 million tonnes of CO2 annually. In addition, the parties are evaluating supplying green hydrogen to other off-takers in hard-to-abate sectors.
- Investigating opportunities in the Nordics: As both companies have their base in Nordic countries, they will also explore the potential for a large-scale hydrogen production facility the Nordics.
- Collaborating in the definition of hydrogen production plant design requirements, system standardisation and optimisation. In addition, combined efforts plan to be dedicated to ensuring the security of supply and safe operation of hydrogen production, storage and utilisation.
- All projects pending successful feasibility studies will be subject to obtaining any necessary regulatory clearances. The ambition is to execute projects from the second half of the decade.
Kajsa Ryttberg-Wallgren, EVP at H2 Green Steel, said, “With this partnership, H2 Green Steel takes an even clearer direction into the green hydrogen economy.”
Per Christian Eriksen, Head of Hydro Havrand, said, “This partnership is built on our companies’ complimentary capabilities in green hydrogen and combine Hydro Havrand’s industrial and energy expertise with H2 Green Steel’s capabilities in the decarbonisation of the steel industry.”