Building envelope solutions and insulation supplier Kingspan is investing in Swedish hydrogen-based steelmaking project H2 Green Steel (H2GS). The move confirms the increasing interest of key steel users in the transition to CO2-neutral steelmaking.
Kingspan will be a single digit minority shareholder, but it intends to enter into a long-term supply agreement with H2GS. “Kingspan is the first building materials company globally to make a commitment to procure H2 Green Steel at scale,” the company says in a note sent to Kallanish.
H2GS targets to start production by 2024 in Boden-Luleå, northern Sweden. It will replace coke and coal with green hydrogen to achieve an almost totally CO2-free steel. By 2030 the company targets a production of 5 million tonnes/year.
“The building industry is a major user of steel, and steel production is a major source of carbon emissions; it is therefore clear that Kingspan’s Planet Passionate commitment to reduce emissions in its primary supply chain must include a new model of steel production,” says Kingspan chief executive Gene Murtagh.
“We have set ourselves the challenging target of reducing emissions from the primary raw materials we use in manufacturing by 50% by 2030, and H2 Green Steel offers a compelling route to achieving this goal,” he continues. “We recognise that for companies to make a meaningful contribution to address the climate crisis they need to be prepared for radical thinking and actions, and our determination to transform our supply chain reflects this.”
Emanuele Norsa Italy