IKEA buys steel from H2 Green Steel for its warehouse shelves

The agreement starts in 2026 when the IKEA stores will replace half of their warehouse shelves with shelves made with fossil-free steel from H2 Green Steel building a steel plant in Boden in Norrbotten.

“The innovation of companies like H2 Green Steel holds great potential for a positive business and climate impact. We are delighted to announce this agreement, as we also want to inspire other businesses to follow. Significant steel volumes from our warehouse racking business will contain green steel. Such improvements will allow us to transition from traditional steel to less carbon-intensive and can support us in reducing carbon emissions in this category by up to 95 percent”, says Karen Pflug, Chief Sustainability Officer, Ingka Group.

The replacement of warehouse furniture is part of IKEA's ambition to make its department stores climate positive by 2030.

“Working together with customers like Ingka Group is the foundation for how we build our company. Progressive first mover customers drive the demand for green steel and help us show others that it’s possible to transform the steel industry on an accelerated timeline. The traditional heavy polluting blast furnaces which use coal and coke are replaced by direct reduction processes that use green hydrogen instead. That means that instead of carbon emissions, the main biproduct in our process is clean steam”, says Henrik Henriksson, CEO of H2 Green Steel.

The signed agreement between Ingka Procurement AB and H2 Green Steel will come into effect from 2026. H2 Green Steel’s new plant in Boden will start production end of 2025 and will be implemented in IKEA stores from 2026.

Lennart Håkansson

editor@northswedenbusiness.com