H2 Green Steel to buy ore from Brazil and Canada

It is disappointing for the privately owned company that the state mining company LKAB does not want to supply ore from the mines in Norrbotten. But H2 Green Steel and LKAB have not reached an agreement. The reason is that they disagree on the capacity of  Malmbanan, the railway between Narvik and Luleå.

The parties are jointly financing an analysis of the capacity of the railway, which will be completed this fall. Thereafter, there may be new negotiations.

But now H2 Green Steel has signed up with mining giants Rio Tinto in Canada and Vale in Brazil for deliveries that cover enough of the ore requirement to secure the financing of the project. The company plans to raise SEK 50 billion in loans and venture capital this year.

The solution means that the carbon footprint of H2 Green Steel's steel will be somewhat larger than if ore was purchased from nearby LKAB. It is about 50 kilograms per ton of steel. This compares with today's blast furnace steel, which emits two tons of carbon dioxide.

H2 Green Steel does not see the agreements with Vale and Rio Tinto only as an emergency solution for ore deliveries, but as a strategic step where the cooperation can be developed in the future.

"This marks another strategic agreement for H2 Green Steel where Vale, in addition to the supply of iron ore pellets, also brings significant experience and great technical knowledge into the collaboration. We look forward to developing decarbonization paths together with the team at Vale. It’s truly impressive to see the engagement outside Sweden for our great project in Boden", says Henrik Henriksson CEO of H2 Green Steel, in a pressrelease.

Lennart Håkansson

editor@northswedenbusiness.com