H2 GREEN STEEL

Promoter – Financial Intermediary

H2GS AB

Location

• Sweden

Description

The project is the implementation of a 2.5 million tons per year hydrogen-based integrated primary steel manufacturing plant. The plant encompasses the following innovative first-of-a-kind commercial scale components: a large scale electrolysis-based hydrogen generation plant, an hydrogen-based direct reduced ironmaking (DRI) plant combined with electric arc furnace (EAF) steelmaking and all associated downstream facilities. The outcoming steel will be very low carbon, meaning the plant will manufacture green high-quality flat carbon steel products targeting mainly the automotive, construction, white goods, industrial equipment and energy sectors.

Objectives

Using green hydrogen based fully or primarily on carbon neutral electricity in steel-making, the objective is to abate close to 90% or more of the CO2 emissions associated with traditional blast furnace steel making.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 314 million

Total cost (Approximate amount)

EUR 5430 million

Environmental aspects

The proposed first-of-a-kind and innovative iron and steelmaking manufacturing route is considered to be breakthrough in terms of low carbon steelmaking and expected to reduce greenhouse (GHG) emissions significantly. The hydrogen based DRI process combined with electrified downstream facilities will abate around 90% or more of emissions associated with traditional coke-based primary steelmaking processes. When implemented, the plant will be the first large scale and very low carbon primary steelmaking plant in Europe and the world and hence entails extensive positive environmental externalities. The new plant is subject to an environmental impact assessment (EIA) according to the EIA directive. The final location of the plant has been defined. The Promoter is already in close contact with the competent authorities and stakeholders since project initiation in order to inform local stakeholders about the project and its potential positive and negative impacts. The full impact study (EIA) is in preparation and will be followed by a public consultation period. The installation does fall under the SEVESO directive as well. The final integrated environmental permit will encompass the operational and construction permits as well as the SEVESO requirements.

Procurement

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to EU public procurement legislation, then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.

Status

Signed - 21/12/2023