Hy24 joins H2 Green Steel investors in Eur1.5 bil fundraising for Swedish plant

Hydrogen fund Hy24 has invested in the 5 million mt/year H2 Green Steel project in Sweden, co-leading a new private placement of Eur1.5 billion ($1.6 billion) in equity, together with existing investors Altor, GIC and Just Climate, to build the plant which will use renewable hydrogen to replace coal in the steel production process.

The planned 700-MW electrolyzer, powered by renewables, will produce hydrogen for the iron reduction process at the plant in Boden, reducing CO2 emissions by around 95% compared to a typical steel plant, H2 Green Steel said in a statement Sept. 7.

“H2 Green Steel Boden is the most advanced large-scale, green industrial project in the world,” Hy24 CEO Pierre-Etienne Franc said in the statement. “It is a trailblazer in decarbonization of hard-to-abate industrial sectors like steel.”

Construction is underway, and the company is targeting first operations by the end of 2025, reaching output of 5 million mt in 2026, H2 Green Steel said.

The company has already signed offtake agreements for its green steel with customers such as carmaker Mercedes-Benz, automotive industry supplier ZF, truck maker Scania and Cargill Metals.

Platts, part of S&P Global Commodity Insights, assessed Northwest European hot-rolled carbon-accounted coil steel up Eur15/mt on the day at Eur780/mt ($835.54/mt) ex-works Ruhr on Sept. 6, a Eur180-200/mt premium to conventional HRC production.

Thyssenkrupp Nucera will supply the alkaline-based electrolyzers for the project.

Platts assessed the cost of producing renewable hydrogen via alkaline electrolysis in Europe at Eur5.68/kg ($6.08/kg) Sept. 6 (Netherlands, including capex), based on month-ahead power prices, down from a peak of over Eur34/kg in August 2022.


Steel decarbonization potential

Hydrogen deployed in the steel sector has the greatest decarbonization impact, according to analysis from S&P Global.

The EU is targeting 10 million mt/year of domestic hydrogen production by 2030, with a further 10 million mt/year in imports. S&P Global analysts said 10 million mt of green hydrogen deployed in the steel sector could meet 11% of global steel demand, avoiding 340 million mt CO2/year.

Sweden is becoming a leading location for green steel.

On Sept. 5, Prime Minister Ulf Kristersson inaugurated a 20-MW green hydrogen plant at Ovako’s Hofors facility for heating steel before rolling.

The electrolyzer will generate 3,880 cu m/hour of green hydrogen, which will be used for steel heating and powering fuel cell trucks, the company said.

“Sweden is now the hub of the fossil-free revolution in steel making,” Kristersson said. “What Ovako is accomplishing here today is a crucial step. This is green transition in action, not just words.”

Authors: James Burgess, Annalisa Villa