Statkraft has signed a seven-year PPA for 2TWh per year to supply renewable electricity to H2 Green Steel’s operations in Boden, Sweden.
Under the agreement with Statkraft, H2 Green Steel has secured a long-term yearly supply of renewable electricity produced in the period 2026-2032.
The delivery includes Guarantees of Origin for renewable energy, sourced from Statkraft’s hydropower plants in Northern Sweden.
In the first phase, H2 Green Steel will produce 2.5 million tonnes of green steel annually.
In order to deliver green steel to European customers, a large amount of renewable electricity is needed.
H2 Green Steel chief procurement officer Luisa Orre said: “In Statkraft we have a partner and a big player that takes true responsibility to support ambitious Nordic sustainable industry initiatives.
“In supplying green electricity, they show a real commitment to making Sweden’s industry renewable within the coming decade.
“This is an important step in building our portfolio of renewable electricity, and we will continue to partner with front-runners in the industry that share our values and that can offer renewable electricity at competitive prices.”
Statkraft executive vice president for markets and IT Hallvard Granheim said: “As Sweden’s fourth largest generator of electricity, we are proud to contribute with a long-term power contract to a new industrial project in Northern Sweden.
“The agreement confirms Statkraft’s position as a key supplier of renewable energy to power-intensive industry in the Nordics.”H2 Green Steel’s plant in Boden will be home to an ~800MW electrolyzer producing the green hydrogen needed to make green virgin iron for the steel production.
The giga-scale electrolysis plant, one of the largest in the world, will be powered by renewable electricity.