EU Grants €265m for Sweden’s H2 Green Steel Facility

The European Commission has announced a substantial investment of €265 million ($284 million) to support H2 Green Steel in developing a pioneering large-scale green steel plant. Located in Boden, Sweden, this site will include a 690MW electrolyzer, a direct reduction plant utilizing renewable hydrogen, two electric arc furnaces, and state-of-the-art cold rolling and finishing facilities. These installations are slated to begin operations in 2026, with an expected annual output of 2.4 million tonnes of green steel.

This significant funding is part of the Recovery and Resilience Facility (RRF) and follows the Commission’s favorable assessment of the Swedish Recovery and Resilience Plan, bringing the total investment for the project to over €500 million ($536 million). While the €6 billion ($6.4 billion) project will be primarily financed by private investments, it has also secured support from the EU Innovation Fund and the European Investment Bank.

The European Commission’s decision to back this initiative is grounded in its alignment with key EU policy objectives, including the European Green Deal and the REPowerEU Plan. This facility will also house one of the largest electrolysis units globally. Reducing the climate impact of steelmaking is crucial for achieving the EU’s target of climate neutrality by 2050. Simultaneously, we ensure that competition remains fair and equitable."

During the World Hydrogen Summit in May, an executive from H2 Green Steel emphasized the company's expansive goals, disclosing their involvement in four additional projects for hydrogen-based steel production across the Americas and Europe. Kasja Ryttberg-Wallgren, Executive Vice-President of Growth & Hydrogen Business, shared that H2 Green Steel is conducting pre-front-end engineering and design (FEED) and FEED studies for new plants in Quebec, Texas, Brazil, and Portugal.

This initiative is a crucial step towards transforming the steel industry, which is traditionally carbon-intensive, by leveraging renewable hydrogen. The plant in Boden, once operational, will significantly contribute to the EU's climate goals by producing steel with a much lower carbon footprint. This project exemplifies the European Commission’s commitment to fostering innovative technologies and sustainable industrial practices as part of its broader strategy to combat climate change and promote energy independence.

As H2 Green Steel continues to expand its footprint with new projects in North and South America and Europe, the company's efforts are poised to make a significant impact on the global steel industry. These initiatives highlight the growing recognition of green hydrogen's potential to revolutionize industrial processes and contribute to a more sustainable future.