H2 Green Steel in billion dollar deal with Thyssenkrupp

Boden Steel company H2 Green Steel has a new multi-billion dollar agreement with German Thyssenkrupp Nucera to build one of the world's largest electrolysis plants in Boden.

The new electrolysis plant will be operational by the end of 2025 and will be one of the world's largest, and according to H2 Green Steel perhaps the largest, green hydrogen production plant in the world. The agreement secures a capacity of more than 700 megawatts. As the hydrogen will be used on site, as an input to the new steel plant, a relatively high level of efficiency will be achieved by not having to transport the hydrogen.

“The electrolysis plant in Boden will be many times bigger than most electrolyzer installations that exist today. Combining our own strong technical expertise with that of an experienced electrolysis supplier like Thyssenkrupp Nucera gives us a solid edge in the growing green hydrogen economy, which we will leverage to transform hard to abate industries. We start with steel in Boden, Sweden, but it’s only the beginning,” says Maria Persson Gulda, Chief Technology Officer H2 Green Steel.

Thyssenkrupp Nucera is a world leader in the engineering, procurement and construction of electrochemical plants. The company has more than 600 projects with a total output of over 10 gigawatts already installed. With its water electrolysis technology to produce green hydrogen, the company offers industrial-scale solutions for industries that want to create a green value chain powered by clean energy.

“This electrolyzer agreement indicates a change in market dynamics and is also a proof of our new business model for reservation of production capacity. For customers where time-to-market is critical, ensuring access to production capacity of leading electrolyzer technology becomes essential. With this bold investment, H2 Green Steel has shown a strong commitment to their timeline to decarbonize the steel industry and we look forward to working with them,” says Dr. Werner Ponikwar, CEO of Thyssenkrupp Nucera AG & Co. KGaA.

In electrolysis, water is split into hydrogen and oxygen using electricity. Producing hydrogen is an important part of the production of fossil-free steel. The hydrogen gas will replace coal and coke when the oxygen is removed from the iron ore. The iron ore is directly reduced to sponge iron, which is then melted and turned into steel in an electric arc furnace.

Lennart Håkansson