The news, unveiled yesterday, revolves around an agreement between H2 Green Steel and Thyssenkrupp Nucera, a division of the renowned German engineering conglomerate Thyssenkrupp.
H2 Green Steel aims to establish a fossil-free steel production facility in Boden, which is expected to be operational within a few years. It's also a large cog in the machine that is the green transition in northern Sweden.
The groundbreaking process involves the utilization of hydrogen gas to manufacture iron sponge, with an essential role played by the electrolyser plant. This plant employs electricity to split water into hydrogen and oxygen.
– When we commence production by the end of 2025, it will likely become one of the world's largest green hydrogen production facilities, if not the largest. We will exclusively utilize this hydrogen for our own operations, states CEO Henrik Henriksson to TT.
While Henrik Henriksson and H2 Green Steel refrain from sharing precise financial figures, they describe the investment as "multi-billion," underscoring its significant scale.
– It's an immense contract for both H2 Green Steel and Thyssenkrupp Nucera. Many green hydrogen projects are widely discussed, but only a few progress to the stage of placing orders and commencing production, adds Henriksson.
Enhanced efficiency is often a concern associated with electrolyser investments, as the conversion from electricity to hydrogen gas can result in energy losses of approximately 20-30 percent of the total content. However, in this specific case, where hydrogen will be directly utilized, the company assures that their plant boasts the highest efficiency available on the market.
– This plant is the epitome of efficiency. Through software optimization, its performance will continue to improve year after year, explains Henriksson.
Although more effective solutions may arise in the coming years, Henriksson emphasizes the need to initiate the green transition now rather than indefinitely delaying progress.
The planned commencement of steel production is slated for 2025. H2 Green Steel is among various stakeholders across Europe endeavoring to produce green steel. Despite the competition, Henriksson remains unfazed by the current challenging investment landscape characterized by rising interest rates worldwide.
– Our project is fundamentally sustainable and environmentally friendly, which provides a strong foundation for both banks and investors. Furthermore, the energy crisis and growing interest in green steel, prompted by conflicts and inflation, have further bolstered the appeal of our project, concludes Henriksson.
The Boden site is targeting production from 2025 and aims to produce 5 million tonnes of green steel annually from 2030.