H2 Green Steel’s customer contracts are based in different areas of industry spanning more than 5-7 years. This requires an initial yearly production volume of 2.5 million tonnes, exceeding company expectations.
Mark Bula, Chief Commercial Officer at H2 Green Steel said, “The demand for green steel by far exceeds what I had expected, and the interest is coming from a broad range of industries. We are already converting this volume into binding long form agreements with our customers.”
The company, launched in 2021, set out with the ambition of cleaning up the steel industry as quickly as possible. Its production technique, which uses green hydrogen instead of coal-fired blast furnaces, claims to produce 90% lower carbon dioxide (CO2) emissions than traditional steelmaking.
Henrik Henriksson, CEO at H2 Green Steel explained, “Presently, the term green steel can mean different things. To us it means steel produced from a combination of a significant amount of green virgin iron and scrap in a production process which uses electricity from renewable energy sources.
H2 Green Steel claims that steel production currently accounts for approximately 7% of global carbon emissions. As well as this, the company argues recycling scrap is merely part of the equation in cleaning up the industry, and that it is important that all new steel produced is ‘truly sustainably produced’.
Henriksson added, “When we launched H2 Green Steel about a year ago, we kicked the transformation of the steel industry into a new gear and other players in the industry have moved up their timelines.
“We are leading the way, showing that it is possible to transform the carbon-intense steel industry quickly, and others are speeding up and stepping up. This is exactly what we want.
“On top of that, the feedback from customers has been phenomenal and their long-term commitments are key for us to scale up further.”
H2 View understands many of the Swedish company’s customers have also signed up for Science Based Targets (SBTi), covering scopes 1, 2 and 3 emissions. SBTi provides a defined pathway for companies to reduce greenhouse gas (GHG) emissions.
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