The European Commission (EC) has approved €265 million ($284m) in state aid to Swedish start-up H2 Green Steel (H2GS) for the establishment of its low-emission steel plant, Kallanish reports.
Located in Boden, the plant will have a 690-megawatt electrolyser, a direct reduction plant operating with renewable hydrogen, two electric arc furnaces, a hot strip mill and cold rolling and finishing facilities. With the installations expected to begin operations in 2026, the plant is anticipated to produce 2.4 million tonnes/year of green steel.
The grant, which will be partially funded through the Recovery and Resilience Facility (RRF), brings the total state funding for the project to over €500m. It was previously awarded €250m from the EU’s Innovation Fund. The total investment for the project, however, is estimated to be around €6 billion.
Margrethe Vestager, the EC’s executive vice president in charge of competition policy, says the Swedish aid will support the establishment of Europe’s “first large-scale steel plant based entirely on hydrogen from renewable sources”.
“This plant will also host one of the largest electrolysers in the world,” Vestager adds. “Reducing the climate impact of steelmaking is important for the achievement of the EU’s target of climate neutrality by 2050. At the same time, we ensure competition is not distorted.”
Speaking at the World Hydrogen Summit in Rotterdam last month, Kajsa Ryttberg-Walgren, H2GS vice president for growth and hydrogen business, said the firm is pursuing four new large projects. Located in Quebec, Texas, Brazil and Portugal, the projects are “close to moving into the permitting phase,” she added.
Reethu Ravi UK