A €6.5 billion ($6.96 billion) hydrogen-fueled steelmaking project has been initiated in northern Sweden with the ambitious goal of eliminating 95% of carbon emissions compared to traditional production methods.
Steel manufacturing is a major contributor to global carbon emissions, accounting for an estimated 9 percent.
Green Steel Production to Commence in 2026
H2 Green Steel, the company spearheading this innovative approach, plans to commence green steel production in mid-2026 at its greenfield site in Boden.
The project aims to supply the European market with an initial annual output of 2.5 million metric tons, with plans to increase capacity to 5 million metric tons by 2030.
The key to this project’s environmental sustainability lies in its utilization of clean hydrogen fuel produced through electrolysis, powered by Sweden’s abundant green hydroelectric power.
This method provides a sustainable alternative to coking coal, a major source of emissions in conventional steelmaking.
Hydrogen-Powered Process and Advanced Electrolyzers
The hydrogen gas will be used to reduce iron ore and convert it into hot “green” iron, which is then combined with recycled scrap. This mixture is processed in electric arc furnaces to produce fresh steel.
The steelmaking plant will be equipped with electrolyzers boasting a 700MW capacity, capable of producing 100,000 metric tons of hydrogen annually, making it one of Europe’s largest green hydrogen facilities.
While the project’s planned steel output is modest compared to the 152 million metric tons produced by Eurofer, supporters of H2 Green Steel believe it will serve as a blueprint for future large-scale production projects.
The ultimate goal is to create a replicable model for sustainable steelmaking across Europe and the world, helping to reduce the carbon footprint of this essential industry.