H2 Green Steel has pre-sold over 1.5 million tonnes of green steel to customers
As a clear sign of a strong customer demand for green steel, H2 Green Steel has already signed off-take supply agreements for over 1.5 million tonnes of the volumes it 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.
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.
Henrik HenrikssonCEO of H2 Green Steel.
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.
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 percent 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.
Henrik HenrikssonCEO of H2 Green Steel.
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. This accelerates their determination to change. These companies want to drastically reduce the carbon footprint within in their products because they realize that this is what their customers are demanding in turn, both today and in the future, and they are willing to pay premium for it.
The sectors recognized as frontrunners driving this change include steel service centers, pipe and tube, passenger vehicles and heavy commercial vehicles, whitegoods and construction products. Examples of customers that have signed term sheets or supply agreements for steel so far with H2 Green Steel include Adient, BE Group, BILSTEIN GROUP, BMW Group, Electrolux, Kingspan, Klöckner & Co, Lindab, Marcegaglia, Mercedes-Benz, Miele, Mubea, Purmo Group, Roba Metals, Scania, Schaeffler, Zekelman Industries and ZF Group.