Marcegaglia signs $2 billion off-take deal with H2GS

Italian steelmaker and re-roller Marcegaglia has signed a seven-year off-take agreement with H2 Green Steel (H2GS). This will see the greenfield low-carbon steelmaking project in Sweden supply Marcegaglia’s plants in southern Europe, the UK and Poland with low-emissions hot and cold rolled, as well as hot-dipped galvanised coil.

The agreement has a value of €1.79 billion ($1.96 billion). Marcegaglia will receive the coils starting in 2026, Marcegaglia and H2GS spokespeople confirm to Kallanish.

In 2021, the Italian re-roller became an industrial partner of the prospective hydrogen-based steelmaking plant in Boden. At the time, H2GS secured $105 million of initial funding. Among the investors are companies already in the steel business, such as recycler Stena and Mercedes Benz, Kingspan, Scania and Exor.

The H2GS plant, for which construction started last year, will start producing by the end of 2025, with a ramp-up in 2026. Capacity of 5 million tonnes/year is targeted by 2030.

“The value of the green steel comes at a premium compared to the fossil product,” an H2GS spokesperson comments. Steel buyers in Europe are demonstrating they are ready to pay a price premium for certified green steel. H2 Green Steel has already signed off-take supply agreements for over 1.5 million tonnes of steel to be produced from 2025 onwards (see Kallanish passim).

Natalia Capra France