Iberdrola and Swedish outfit H2 Green Steel (H2GS) have partnered to build a 1GW green hydrogen plant.
The facility will produce and feed green hydrogen to a two million tonne direct reduction tower, enabling Green Steel production with a 95% reduction in carbon dioxide emissions.
The site will be located in the Iberian Peninsula, where several possible locations are being considered, with production intended to start in 2025 or 2026.
The locations that H2 Green Steel and Iberdrola are assessing will all have “access to cost-effective renewable electricity” and the infrastructure required to operate a green hydrogen, green iron and green steel business.
The 1GW electrolyser will be jointly owned and operated by Iberdrola and H2 Green Steel.
Iberdrola will deliver renewable energy to the plant, while the direct reduction, including any downstream green steel production processes, will be owned and operated by H2 Green Steel.
The companies will explore the opportunity to co-locate a green steel production facility capable of producing up to five million tonnes of green flat steel annually, in conjunction with the plant.
H2GS chief executive Henrik Henriksson (pictured) said: “We are proud and thrilled to partner with Iberdrola to enable the increased production of green hydrogen and green iron.
“By working with a world-class partner, we can initiate our growth journey while reducing the technical risk in our Boden project.
“Iberdrola brings invaluable experience, technology and know-how that will be used to take our Green Steel projects to the next level.”
“Innovative projects like this” will help to speed-up the commercialisation of “larger and more sophisticated electrolysers”, making green hydrogen more competitive, said Aitor Moso, Iberdrola’s liberalised business director.
“Our project in Boden in northern Sweden has proved that there is a very strong demand for Green Steel from a broad customer base.
“The collaboration with Iberdrola will strengthen and refine our Boden platform, infrastructure, and project execution,” added Kajsa Ryttberg-Wallgren, executive vice president head of hydrogen at H2 Green Steel.
The venture will be financed with a combination of public funding, green project financing and equity and has a budget of approximately €2.3bn.