H2 Green Steel continues to land long-term contracts

Boden Over the past six months, H2 Green Steel has signed agreements with about ten customers who want to buy the company's fossil-free steel, including BMW, Be Group and Bilstein Group. Recently, the largest contract to date was signed with the Italian company Marcegaglia.

Marcegaglia is a family-owned company with 37 plants around the world producing products such as steel pipes, structural steel, guardrails and heavy plate. The company is also one of the investors in H2 Green Steel.

 “H2 Green Steel came in as a challenger in a traditional market a couple of years ago, and have proven with speed, perseverance, and a great team that they are a force to be reckoned with. We believe in the partnership approach in business, and we took this approach from day one with H2 Green Steel as they are a key player for us on our decarbonization journey which is essentially all about future-proofing our business”, says Antonio Marcegaglia, Chairman and CEO at Marcegaglia Steel.

For H2 Green Steel, the new contract is strategically important.

“This is a very milestone agreement for us at H2 Green Steel and a real celebration on our journey. Not only for the value of about EUR 1.79 billion, but also because of the quality player that Marcegaglia is in the steel industry. Marcegaglia have been true partners to H2 Green Steel. They challenge us every step of the way, but are incredible supporters of our team and our project”, says Henrik Henriksson, CEO at H2 Green Steel.

Despite the tougher times, H2 Green Steel expects that the plan to commission the new plant in 2025 can be realized, despite higher interest rates and the recession making investments more expensive. The plan calls for just under half of the planned 2.5 million tons of production in the first phase to be booked in long-term contracts by customers several years in advance. The other half will be left open.

H2 Green Steel has started building a new steel industry in Boden, Norrbotten, where it will use hydrogen-based direct reduction to produce sponge iron, which is then melted in an electric arc furnace. The end product will be rolls of flat steel, known as coils.
The first phase should be in production by the end of 2025, and full production capacity should be reached in 2030, with 5 million tons of steel.

Lennart Håkansson

editor@northswedenbusiness.com