Under the agreement, Fortum initially plan to include two deals for 2.3TWh per year, and index based PPA of 1.3TWh annually from 2026 with a five-year hedging horizon and a fixed price PPA of 1TWh for up to nine years from 2027.
To power the 700 to 800MW electrolyser, significant volumes of electricity will be needed to generate green hydrogen, which will reduce iron ore to sponge iron to feed the steel production at H2 Green’s Boden plant in northern Sweden.
The company expects the plant to produce an annual volume of 2.5 million tonnes of green steel in its first phase, before scaling up to around five million tonnes with operations starting in 2025.
Read more: H2 Green Steel breaks ground at Boden hydrogen production facility
Rikard Dagerbäck, Sales Manager and Strategic Customer Director at Fortum, said, “H2 Green Steel is one of the companies paving the way for this green industrial transition in the Nordics.
“We believe that the complex nature of electrification and hydrogen projects at scale require cross-sectoral partnerships as well as large amounts of clean energy.”
H2 Green Steel recently announced Just Climate has made an undisclosed investment in the company to help develop the Boden plant.
Read more: Just Climate invests in H2 Green Steel
H2 View understands that the investment in H2 Green Steel forms part of the steelmaker’s €260m Series B fundraising, announced last year.
The company also revealed its set to work together developing digital solutions with Mobilaris at its plant in northern Sweden.
Read more: Mobilaris and H2 Green Steel to collaborate on digital solutions at Boden green hydrogen plant
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