H2 Green Steel & Iberdrola to Build Green Hydrogen Plant in Spain
Strategic Research Institute
Published on :
03 Dec, 2021, 5:41 am
The Swedish green impact company H2 Green Steel and Spain headquartered renewable energy company Iberdrola announced a partnership to build a 1GW plant to produce Green Hydrogen. The new plant will produce and feed Green Hydrogen to a 2 million tonne direct reduction tower, enabling Green Steel production with a reduction of CO2 emissions by 95 percent. The site will be located in the Iberian Peninsula, where several possible locations are currently being considered, with production intended to start in 2025 or 2026. The locations that H2 Green Steel and Iberdrola are assessing will all have access to cost-effective renewable electricity and the infrastructure required to successfully operate a Green Hydrogen, Green Iron and Green Steel business.
The companies have agreed to establish a Green Hydrogen production facility with 1GW electrolysis capacity, and a DRI process capable of producing approximately 2 million tons of direct reduced Green Iron annually. The electrolyser will be jointly owned and operated by Iberdrola and H2 Green Steel. Iberdrola will deliver renewable energy to the plant, while the DRI production, including any downstream Green Steel production processes, will be owned and operated by H2 Green Steel. The companies will explore the opportunity to co-locate a Green Steel production facility capable of producing 2.5-5 million tons of Green flat steel annually, in conjunction with the plant.
The green impact venture will be financed with a combination of public funding, green project financing and equity. With a budget of approximately EUR 2.3 billion, the joint venture’s large-scale Green Hydrogen production will help enable the transition of heavy industry towards sustainable operations.
H2 Green Steel was founded in 2020 with the ambition to accelerate the decarbonization of the steel industry, using green hydrogen. Steel, which is one of the world’s largest carbon dioxide emitters, is the company’s first business vertical. The founder and largest shareholder of H2 Green Steel is Vargas, which are also co-founder and one of the larger shareholders in Swedish battery maker Northvolt. H2 Green Steel is headquartered in Stockholm, Sweden, with its first green steel plant under development in Boden in northern Sweden.