Under the agreement, a total volume of 159,000 tonnes of green steel will be supplied to Lindab over seven years, with deliveries planned to start in 2026.
It comes as just the latest offtake agreement for H2 Green Steel’s inaugural plant in Boden, Sweden, with the likes of Porsche, ZF, Scania, Ikea and more.
Currently under construction, the plant will produce up to five million tonnes of steel with up to 95% less carbon dioxide (CO2) emissions compared to traditional steelmaking.
Set to use green hydrogen produced on-site from 700MW of electrolysis in the direct reduction of iron (DRI), the plant is expected to start producing steel in 2026, before scaling up to full capacity by 2030.
Ola Ringdahl, President and CEO at Lindab, said steel was the “biggest emissions driver” in the company’s supply chain and with H2 Green Steel, it will “make big strides in this area.”
“This contract shows real commitment from both parties to working together on long-term solutions for significantly reducing the CO2 footprint in this critical sector,” Stephan Flapper, Commercial Director at H2 Green Steel.
Speaking at the World Hydrogen Summit in Rotterdam last week, H2 Green Steel’s Executive Vice-President, Growth & Hydrogen Business, Kasja Ryttberg-Wallgren, explained binding contracts were crucial in allowing the company to reach financial close with a total package of €6.5bn.
Read more: H2 Green Steel is working on four more hydrogen-based steel plants
“The key items to make this happen to reach FID and financial close is not talking about MoUs (memoranda of understanding) or your term sheets, it’s about binding contracts,” she said.
“The core challenge from the beginning is to convince [customers] to sign a seven-year contract at a premium for deliveries in 2026.
“But we have customers that are willing to pay the premium and cover the costs, we are building a plant where we can be as low-carbon as possible because then we can benefit from the highest premium, and if you have the baseload and low electricity cost, you have an optimised OPEX.”
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