Sweden: BODEN - H2 Green Steel, a recently established company, has revealed its intention to construct a Hydrogen-powered Steel plant situated in Boden, northern Sweden with production commencing in 2024. H2 Green Steel is dedicated to creating a cleaner and healthier planet, and this commitment goes beyond producing Steel using methods that minimize negative environmental impact, pollution, and waste. The company has adopted an extensive set of goals and policies, encompassing its business model, supply chains, and impact on the local communities. This approach considers the environmental, economic, and social aspects of the company's operations.

The new facility, a completely digitalized and automated greenfield Steel plant, will be free from fossil fuels. By merging raw materials, renewable energy, local expertise, and artificial intelligence, the company aims to achieve zero emissions. To achieve this goal, H2 Green Steel intends to establish a large-scale production site for green Steel in collaboration with customers in diverse sectors such as automotive, commercial vehicle, white goods, furniture, and industrial equipment.

A new plant will be constructed by the company between the two towns of Boden and Lulea in Svartbyn, with access to renewable electricity from hydropower and wind power. The plans are significantly supported by the Technical University and Sweden's largest bulk goods harbor situated nearby in Lulea. The new Steel plant is expected to produce 5 million tons of fossil-free Steel by 2030, which will replace coking coal with Hydrogen and electricity. Although it is a small facility globally, it will outperform Swedish Steel manufacturer SSAB's production in its Swedish plants located in Lulea and Oxelosund, which produces 3.8 million tons.

One of Europe's largest green Hydrogen plants will be integrated as part of the Steel production facility in the new Steel plant. Once construction commences, the project is expected to provide employment to approximately 1,500 individuals. Henrik Henriksson, former CEO of Scania, has been selected to lead H2 Green Steel. The company has been founded by investment firm Vargas Holding, which is also a co-founder of battery manufacturer Northvolt.

The initial phase of the project is estimated to cost 2.5 billion euros ($3 billion, 25 billion SEK), and financing has been secured for it. The company received 50 million euros in the first funding round through various investors, including Vargas Holding, Scania, SMS Group, Bilstein Group, Altor Fund V, Imas Foundation, InnoEnergy, Kinnevik's Christina Stenbeck, and Daniel Ek, founder of Spotify.

Northern Sweden is a favourable location for this project, as it has access to fossil-free electricity, premium iron ore, and a specialized Steel industry. The region is now experiencing the growth of a cluster of sustainable industries. In Lulea, the Hybrit project, a joint venture between SSAB, state-owned mining firm LKAB, and state-owned energy producer Vattenfall, is operating a pilot plant for Hydrogen-based, fossil-free Steel production. Furthermore, Northvolt is constructing an extensive battery production facility in Skelleftea, located 120 kilometers to the south.