Sweden’s H2 Green Steel has pre-sold over one and a half million tonnes of steel to be produced by green hydrogen to customers.
The off-take supply agreements are for volumes the company will produce from 2025 onwards.
H2 Green Steel has signed customer contracts in different industries of more than 5-7 years for over 1.5 million tonnes per year out of the planned initial yearly production volume of 2.5 million tonnes.
H2 Green Steel chief executive Henrik Henricksson said: “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.”
The technology for making green steel is there, and the customers are willing to pay a premium for it.
When a reasonable polluters-pay-principle is in place and put in product cost calculations, the business case for green steel will be even stronger, H2 Green Steel stated.
“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 and where the total CO2 emissions are more than 90% lower than that of traditional steelmaking in a blast furnace process.
“Recycling scrap is part of the equation, but it will not be enough to meet the global demand for steel. We need to make sure that all the new steel is truly sustainably produced,” added Henriksson.
Most of the customers pioneering the green transition with H2 Green Steel have signed up for Science Based Targets covering not only scope 1 and 2 but also scope 3 emissions, it said.