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A Swedish agency backed by buyers together with Spotify founder Daniel Ek plans to construct a steel manufacturing facility in the north of the nation that will be powered by what it describes as “the world’s largest green hydrogen plant.”
H2 Green Steel, which was established in 2020, will deal with steel made utilizing a “fossil-free manufacturing process” and look to provide European producers with its finish product.
In an announcement earlier this week the firm — which will be headed up by Henrik Henriksson, the present CEO of Scania — mentioned steel manufacturing would begin in 2024 and be primarily based in Sweden’s Norrbotten area. By 2030, the purpose is for the enterprise to have the capability to produce 5 million tons of steel per yr.
“The climate crisis is the biggest challenge of our time,” Henriksson mentioned in a assertion issued Tuesday.
“And given … steel’s impact on other industries’ sustainable development, a rapid change of the steel industry is extremely important,” he added.
According to the International Energy Agency, the iron and steel sector is liable for 2.6 gigatonnes of direct carbon dioxide emissions every year, a determine that, in 2019, was higher than direct emissions from sectors akin to cement and chemical compounds.
It provides that the steel sector is “the largest industrial consumer of coal, which provides around 75% of its energy demand.”
The dimension of H2 Green Steel’s hydrogen plant will be round 800 megawatts, with its finish product changing coal and coke in the steel manufacturing course of.
Hydrogen can be produced in a variety of methods. One consists of utilizing electrolysis, with an electrical present splitting water into oxygen and hydrogen. If the electrical energy utilized in the course of comes from a renewable supply akin to wind or photo voltaic then it is termed “green” or “renewable” hydrogen.
The firm’s largest shareholder is funding agency Vargas, a co-founder of battery maker Northvolt. H2 Green Steel is at present wrapping up sequence A fairness financing of 50 million euros (round $61.1 million). Investors embody Scania, EIT InnoEnergy, and Spotify founder Daniel Ek.
Steel manufacturing is considered one of many industrial processes ripe for enchancment when it comes to emissions and different metrics associated to sustainability.