H2 Green Steel builds fossil-free steel plant in northern Sweden

The new fossil-fuel free steel plant will be a fully integrated, digitalized and automated greenfield steel plant, the company announced:

“By bringing together raw materials, renewable energy, local expertise, and artificial intelligence, we aim to bring emissions down to zero. That’s why we are planning to build a large-scale production site for green steel in collaboration with customers across multiple segments including automotive, commercial vehicle, white goods, furniture, and industrial equipment.”

In Svartbyn, between the two communities Boden and Luleå, the company will build the plant with access to renewable electricity from water power and wind power. In nearby Luleå, the Technical University and Swedens largest bulk goods harbour, are key factors for the plans.

In 2030 the new steel plant will produce 5 million tons of fossil free steel, replacing coking coal with electricity and hydrogen. Globally it is a small plant, but still more than the Swedish steel producer SSAB produce in its Swedish plants in Luleå and Oxelösund: 3,8 million tons.

The new steel plant will include one of Europes biggest green hydrogen plants as an integrated part of the steel production facility. When the building of the plant has started,  it will employ some 1.500 people. Henrik Henriksson, will leave his position as chief executive of truckmaker Scania, to lead H2 Green Steel.

Behind the new company is investment firm Vargas Holding, also cofounder of battery maker Northvolt.

Financing for the first phase of the project would total 2.5 billion euros ($3 billion, 25 billion SEK). In the first financing round the company got 50 million euro from, among others, Vargas Holding, Scania, SMS Group, Bilstein Group, Altor fund V, Imas Foundation, Innoenergy, Kinnevik´s Christina Stenbeck and Daniel Ek, founder of Spotify.

North Sweden has god conditions for this kind of project, with good access to fossil free electricity, high-quality iron ore and a specialized steel industry. Now you can see a cluster of sustainable industries growing in the region

In Luleå the Hybrit project, a joint venture between SSAB, the state owned mining company LKAB and state owned energy producer Vattenfall, is running a pilot plant for hydrogen based, fossil free steel production. And 120 kilometers to the south, in Skellefteå, Northvolt is building a massive factory for battery production.