ZURICH, July 22 – Hitachi Energy today announces that it has signed a Memorandum of Understanding (MoU) with H2 Green Steel to leverage electrification, digitalization, and hydrogen to support the decarbonization of the steel industry. H2 Green Steel, a Swedish industrial start-up, is on a mission to accelerate the global steel industry’s greatest technological shift by eliminating almost all of carbon dioxide (CO2) emissions from the steel production process.
It is planning to build its first fossil-free steel plant in Boden, Sweden, alongside a giga scale electrolyzer plant for the production of green hydrogen. The MoU outlines a collaboration which is built on three (3) pillars: 1) Hitachi Energy’s equity investment in H2 Green Steel; 2) products and services from Hitachi Energy that are needed to construct and improve the electrical infrastructure to power steel production and giga scale electrolyzer plants; 3) green steel to be used in the manufacturing of Hitachi Energy’s products, once H2 Green Steel starts production.
Over the past decade, expanding steel production has increased total energy demand and CO2 emissions, which contributes to about eight percent of the world’s global industrial carbon emissions. Starting with the plant in Boden, H2 Green Steel will leverage Hitachi Energy’s capabilities to optimize customers’ value chain to plan, build, operate, and maintain the power infrastructure that includes IT and operational technology (OT). The steel production in Boden will use green hydrogen instead of coal in a fully integrated process using end-to-end digitalization, which reduces up to 95 percent CO2 emissions compared to traditional steelmaking.
This will be equivalent to removing 3 million passenger cars per year from road. Achieving carbon-neutrality globally requires efforts from all industries to speed up the energy transition through collaborations, says Johan Söderström, Head of Europe, Middle East, and Africa at Hitachi Energy. This collaboration with H2 Green Steel is a pioneering example of how we are working together and creating additional benefits for our customers. We are supporting H2 Green Steel’s electrification project and at the same time, we are able to secure green steel for our products, which is in line with our Purpose: Advancing a sustainable energy future for all, he added.
The partnership we have entered into with Hitachi Energy is further reinforced by an equity investment in H2 Green Steel. The partners we choose to work with need to share our values, to make a real commitment to live up to the Paris Agreement, and to work tightly together to leverage each other’s strengths. With Hitachi Energy we have that, as well as their long history, broad experience, and innovative offerings, says Henrik Henriksson, CEO of H2 Green Steel.