H2 Green Steel (H2GS), a Swedish start-up founded in 2020, is on the brink of making history with its €6.5bn funding secured for the world’s largest green steel project.
The initiative, set to be the biggest green hydrogen facility in Europe, aims to combat the steel industry’s significant carbon footprint, responsible for 7-11% of global carbon emissions.
The primary objective of H2GS is to revolutionize steel production by replacing coking coal with green hydrogen. Traditional steelmaking processes emit large amounts of carbon dioxide, contributing to environmental degradation. H2GS aims to decarbonize iron extraction from ore and employ renewable energy to power electric arc furnaces, heralding a new era of near-zero-emission steel.
The heart of this ambitious project lies in incorporating approximately 1GW of electrolysers, marking a substantial leap in green hydrogen technology. By utilizing green hydrogen, the extraction of iron from ore can be decarbonized, addressing a critical gap in existing methods.
The global steel industry, notorious for its reliance on highly-polluting coal, is poised for a transformative shift. H2GS, alongside established players like Thyssenkrupp and ArcelorMittal, aims to set a precedent for sustainable steel production. If successful, this venture could significantly reduce the industry’s carbon footprint, offering a model for environmentally conscious steelmaking globally.
