H2 Green Steel buys electricity from Fortum for billions

This means that the Finnish energy company will be responsible for a large part of the electricity supplies to the new steel industry in Boden. The agreement is even bigger than the one H2 Green Steel signed last year with Norwegian state-owned Statkraft, which was for 2 TWh per year. The new agreement is for 2.3 TWh. 

The two agreements mean that H2 Green Steel has signed agreements with two state-owned energy groups in neighboring countries, agreements that cover half of the steel company's need for 9.5 TWh per year when production is in full swing. This is equivalent to 6-7% of Sweden's total current electricity consumption.

"We are proud to bring Fortum onboard as a core partner in our energy portfolio and will continue to build our portfolio with long-term renewable electricity at competitive price-levels,” says Luisa Orre, Chief Procurement Officer, H2 Green Steel.

According to Fortum, the electricity for H2 Green Steel will primarily be supplied from Fortum's hydropower plants in northern Sweden. About half of the deliveries are regulated by an index, while the other half are at a fixed price for nine years.

"H2 Green Steel is one of the companies paving the way for this green industrial transition in the Nordics. We believe that the complex nature of electrification and hydrogen projects at scale require cross-sectoral partnerships as well as large amounts of clean energy”, says Rikard Dagerbäck, Sales Manager & Strategic Customer Director, Fortum.

Lennart Håkansson

editor@northswedenbusiness.com