H2 Green Steel (H2GS) has secured $105 million of initial funding to push forward its plan for a greenfield hydrogen-based steelmaking plant in Boden-Luleå, northern Sweden, Kallanish notes. One new investor to the party is Italy’s Marcegaglia.
“The strong investor interest and high-quality investor base demonstrate a firm belief in H2GS and the market potential for green steel. New investors include a broad spectrum of companies and individuals ranging from strategic off-takers, technical partners and long-term investors focusing on green impact, sustainability and industry 4.0,” H2GS observes.
Among the investors are companies already in the steel business, such as steel supplier Marcegaglia and recycler Stena. Other investors include Mercedes Benz, Kingspan, Scania and Exor.
Italian re-roller Marcegaglia confirms it will also become an industrial partner for the plant.
H2GS construction is expected to start by mid-2022, with 2.5 million tonnes/year of hot and cold rolled coil capacity to be reached by 2026. Production will begin in 2024, with a capacity of 5m t/y targeted by 2030 (see Kallanish passim).
H2GS, to be headed by current Scania chief executive Henrik Henriksson, will integrate a giga-scale green hydrogen plant into the steelworks, which will also produce galv. Power will be sourced from hydroelectric power plants in the Luleå area, as well as wind farms.
Marcegaglia intends to buy 5% of the green steel coil production and will re-roll 5% of H2GS output as the steelmaker intends to reach southern and Eastern European markets. Marcegaglia will re-roll a total of 250,000 tonnes in 2024 and will double this figure to 500,000t when H2GS’s production reaches 5m t/y.