H2 Green Steel plans new steel plant in Canada

The steel plant in the northern part of Quebec is expected to be an investment of up to EUR 6 billion, according to the news agency Bloomberg. If you choose to invest only in the production of hydrogen and sponge iron, the investment cost is halved. Which it will be depends on how much power is allocated.

The main reason why H2 Green Steel chooses Canada and Quebec is because of the availability of iron ore and hydropower.

"It is probably the best place in the world, together with Boden, to produce green sponge iron, says H2 Green Steel's vice president Kajsa Ryttberg-Wallgren," to Dagens Industri. 

It is only a few months since H2 Green Steel closed the financing for the steel plant construction in Boden, where it has raised EUR 5.1 billion, of which EUR 1.6 billion in venture capital.

Production in Boden should be up and running by the end of 2025. The plan in Quebec is to begin construction in 2026-27 and start production in 2029.

Battery manufacturer Northvolt, also founded and owned by venture capitalist Harald Mix, announced in September that it will build a new battery factory in Quebec.

An advantage for both ventures is that Canada has followed the US example of government support for green investments.

Lennart Håkansson

editor@northswedenbusiness.com