H2 Green Steel, the greenfield low-carbon steelmaking project in Sweden, says it has already signed off-take supply agreements for over 1.5 million tonnes of steel to be produced from 2025 onwards.
The company confirms its customers are willing to pay a premium for green steel. “When a reasonable polluters-pay-principle is in place and put in product cost calculations, the business case for green steel will be even stronger,” H2 Green Steel says in a note sent to Kallanish.
“Presently, the term green steel can mean different things. To us it means steel produced from a combination of a significant amount of green virgin iron and scrap in a production process which uses electricity from renewable energy sources and where the total CO2 emissions are more than 90% lower than that of traditional steelmaking in a blast furnace process,” says H2 Green Steel chief executive Henrik Henriksson.
“Recycling scrap is part of the equation, but it will not be enough to meet the global demand for steel. We need to make sure that all the new steel is truly sustainably produced,” he adds.
So far, customers that have signed supply agreements include Electrolux, Kingspan, Miele, Scania, Marcegaglia, Klockner, BMW and Roba Metals.
“Most of the customers pioneering the green transition with H2 Green Steel have signed up for science-based targets covering not only scope 1 and 2 but also scope 3 emissions. This accelerates their determination to change,” the firm says. “These companies want to drastically reduce the carbon footprint within their products because they realise that this is what their customers are demanding in turn, both today and in the future, and they are willing to pay a premium for it.”
Emanuele Norsa Italy