H2 Green Steel chooses SMS group as technology partner

H2 Green Steel has selected metallurgical plant manufacturer SMS Group to supply process technology for its low carbon steel plant in northern Sweden, the company said Oct. 17.

H2 Green Steel is developing a green hydrogen powered plant in Boden that will produce 2.1 million mt/year of hot direct reduced iron and hot briquetted iron to feed an initial production of 2.5 million mt/year of low carbon steel, potentially increasing to 5 million mt/year by 2030.

SMS will deliver the process equipment for the electric arc furnace, or EAF, and the casting and cold and hot rolling plant.

The total order volume for SMS group exceeds Eur1 billion ($970 million) and includes the earlier announced order awarded to SMS’s wholly owned subsidiary Paul Wurth and its consortium partner Midrex.

“Hydrogen-based green steel is the future of primary steelmaking, and we are all working full speed ahead to deliver the key technologies to start a new era of steelmaking. We are excited to continue the partnership with the H2 Green Steel team and looking forward to the joint realization of this lighthouse project,” SMS Group CEO Burkhard Dahmen said.

“We have jointly designed the plant to make a significant CO2 reduction throughout the whole steel plant in a way that will set us apart from others in the market,” H2 Green Steel CTO Maria Persson Gulda said.

H2 Green Steel’s process will remove up to 95% of carbon emissions compared to traditional steelmaking with a blast furnace and using iron ore.

The Platts 62% Fe iron ore index was at $96.15/dry mt CFR North China on Oct. 14, down 19.5% since the start of 2022. Platts is part of S&P Global Commodity Insights.

— Annalisa Villa