The Swedish company H2 Green Steel has signed a framework agreement with Fortum for the supply of carbon-free energy for the metallurgical plant in Buden.
The agreement provides for the supply of 1.3 TWh per year from 2026 for 5 years and 1 TWh from 2027 for 9 years, according to H2 Green Steel.
It is noted that significant amounts of electricity are needed to power a 700-800 MW electrolyzer that will produce green hydrogen, which. Hydrogen will be used to convert ores into sponge iron.
"In this important partnership with Fortum, another big step has been taken in support of the ambitious enterprise H2 Green Steel and the decarbonization of the steel industry," the message reads.
The Boden plant is expected to initially produce 2.5 million tonnes of green steel per year from 2025. In the second stage, the company will increase production to approximately 5 million tons.
"Decarbonisation of industrial processes is a fundamental next step towards carbon neutrality, said Rikard Dagerbeek, Fortum's Sales Manager and Director of Strategic Customers. – We believe that the complex nature of large-scale electrification and hydrogen projects requires cross-industry partnership, as well as large volumes of clean energy."
Earlier, EcoPolitic wrote, that car manufacturers BMW, Scania and Mercedes-Benz, as well as household appliances brands Electrolux and Miele signed supply agreements with the Swedish company H2 Green Steel, which will stimulate the development of the low-carbon steel market.
As EcoPolitic previously reported, scientists from the University of Birmingham in Great Britain have developed a cheap technological process for existing metallurgical plants, thanks to which it is possible to reduce emissions by about 90%.
