H2 Green Steel signs 7-year deal with Purmo Group to supply low carbon steel

H2 Green Steel has entered into a binding agreement with Purmo Group, a supplier of indoor climate solutions, for the delivery of its low carbon steel to support the company’s drive towards sustainability.

H2 Green steel will delivery to Purmo Group 140,000 mt of green steel over 2026 to 2033, the companies said Nov. 6. Steel represents approximately 50% of all raw materials that Purmo Group purchases.

“We will be pioneers in our industry, securing the supply of green steel and starting the production of green steel products,” John Peter Leesi, CEO of Purmo Group said. ”Our customers are demanding new and more energy-efficient heating and cooling systems and Purmo Group is well positioned to fulfil this growing demand.”

H2 Green Steel’s plant in Boden, northern Sweden, will start production at the end of 2025 and will have a total capacity of 5 million mt/year of crude steel by 2030. The plant is integrated with the world’s largest electrolysis plants and is fed by green hydrogen produced with renewable electricity. It enables the reduction of CO2 emissions by up to 95% compared to traditional steelmaking powered by coal.

Purmo Group’s decision to source green steel from H2 Green Steel is part of its ambition to align its productions towards a 1.5C future and carbon neutrality by 2025.

H2 Green steel has entered in many offtake agreements with steel buyers from different industries as demand for low carbon steel across different sectors grows.

Platts, part of S&P Global Commodity Insights, on Nov. 3 assessed Northwest European hot-rolled carbon-accounted coil up Eur5/mt on the day at Eur750/mt ($805.20/mt) ex-works Ruhr.

The assessment was calculated in line with the sum of Platts daily carbon-accounted steel premium assessment and Platts daily hot-rolled coil price assessment in Northwest Europe.

Tradable values for material with CO2 content below 1 mt under scopes 1-3 were heard with a premium of Eur50-150/mt.

Author: Annalisa Villa