Hitachi Energy has signed a memorandum of understanding (MoU) with H2 Green Steel on projects that support the industrial start-up in producing green steel.
Under the agreement, Hitachi will make an equity investment in H2 Green Steel.
The deal also covers the supply products and services that are needed to construct and improve the electrical infrastructure to power steel production and giga scale electrolyzer plants.
Finally, green steel off-take from H2 Green Steel for the manufacturing of Hitachi Energy’s products will occur once production starts.
Starting with the plant in Boden in Sweden (pictured), H2 Green Steel will leverage Hitachi Energy’s capabilities to optimize customers’ value chain to plan, build, operate and maintain the power infrastructure, which includes IT and operational technology (OT).
As part of the agreement Hitachi Energy will also become a customer of H2 Green Steel at start of production, in addition to stepping in as an investor in the company.
Steel making is an extremely energy intense process.
H2 Green Steel will use an electrified process at industrial scale instead of the traditional coke powered blast furnaces.
While removing almost all CO2 emissions from the steel production, it puts a large emphasis on the importance of having an efficient and reliable electrical infrastructure to power the plant production processes.
H2 Green Steel chief executive Henrik Henriksson said: “The collaboration we have entered into with Hitachi Energy is further reinforced by them taking an equity investment in H2 Green Steel.
“The companies we choose to work with need to share our values, make a real commitment to live up to the Paris Agreement and to work tightly together to leverage each other’s strengths.
“In Hitachi Energy we have that, as well as their long history, broad experience and innovative offerings.”
Hitachi Energy head of Europe, Middle East and Africa Johan Söderström added: “Achieving carbon-neutrality globally requires efforts from all industries to speed up the energy transition through collaboration.
“This collaboration with H2 Green Steel is a pioneering example of how we are creating benefits for our customers.
“We are supporting H2 Green Steel’s electrification project and at the same, we are able to secure green steel for our products which is in line with our purpose of advancing a sustainable energy future for all.”