The Commission has approved support to H2GS's project aimed to set up a large-scale green steel plant in Boden, Sweden. The steel plant includes the construction of: (i) one of the largest electrolysers in the world with a capacity of 690 megawatt; (ii) a direct reduction plant operating with renewable hydrogen; (iii) two electric arc furnaces; and (iv) cold rolling and finishing facilities.
The new installations will start operating in 2026 and produce 2.4 million tonnes of green steel per year. The use of renewable energy for the whole manufacturing process will neutralise up to 87% of greenhouse gases emissions compared to traditional steel manufacturing processes. H2GS has committed to actively share the experience and technical know-how gained through the project with industry and academia.
The aid will take the form of a direct grant of €265 million. The project, which concerns a €6 billion total investment, will be primarily financed by private investment but it has also been selected for support under the EU Innovation Fund and has received financing from the European Investment Bank.
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