Iberdrola and the Swedish firm H2 Green Steel (H2GS) have joined forces to create a 1GW green hydrogen power plant.
The project will manufacture and feed green hydrogen to a two million tonne direct reduction tower, allowing Green Steel production while reducing carbon dioxide emissions by 95 percent.
The facility will be on the Iberian Peninsula, where various potential locations are being investigated, with production set to begin in 2025 or 2026.
The locations being considered by H2 Green Steel and Iberdrola will all have “access to cost-effective renewable power” as well as the infrastructure needed to run a green hydrogen, green iron, and green steel business.
Iberdrola and H2 Green Steel will jointly own and operate the 1GW electrolyzer.
Iberdrola will supply renewable energy to the factory, while H2 Green Steel will own and run the direct reduction, as well as any downstream green steel manufacturing processes. In combination with the plant, the firms will investigate the possibility of co-locating a green steel production facility capable of producing up to five million tonnes of green flat steel yearly.
“We are happy and thrilled to work with Iberdrola to allow increasing production of green hydrogen and green iron,” stated H2GS CEO Henrik Henriksson.”By collaborating with a world-class partner, we can embark on our expansion path while lowering technical risk in our Boden project.”
“Iberdrola contributes tremendous expertise, technology, and know-how that will be utilised to further our Green Steel initiatives. Innovative initiatives like these will aid in the commercialization of bigger and more advanced electrolysers, making green hydrogen more competitive, according to Aitor Moso, Iberdrola’s liberalized business director.”
“Our initiative in Boden, northern Sweden, has demonstrated that there is a high demand for Green Steel from a diverse consumer base.”
“The relationship with Iberdrola will expand and develop our Boden platform, infrastructure, and project execution,” Kajsa Ryttberg-Wallgren, executive vice president and head of hydrogen at H2 Green Steel, noted.
The enterprise, with a budget of around €2.3 billion, will be financed through a combination of public funds, green project financing, and equity.