Hitachi Energy partners with H2 Green Steel for equity investment, energy solutions and green steel
Hitachi Energy joins forces with H2 Green Steel on projects that support the industrial start-up in producing green steel.
In a Memorandum of Understanding, the two companies outline a collaboration with three main elements:
An equity investment by Hitachi Energy in H2 Green Steel,
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; and
Green steel off-take from H2 Green Steel for the manufacturing of Hitachi Energy’s products, once production starts.
Steel making is an extremely energy intense process. H2 Green Steel will use an electrified process at industrial scale instead of the traditional coke powered blast furnaces. While removing almost all CO2 emissions from the steel production, it puts a large emphasis on the importance of having an efficient and reliable electrical infrastructure to power the plant production processes.
The collaboration we have entered into with Hitachi Energy is further reinforced by them taking an equity investment in H2 Green Steel. The companies we choose to work with need to share our values, make a real commitment to live up to the Paris Agreement and to work tightly together to leverage each other’s strengths. In Hitachi Energy we have that, as well as their long history, broad experience and innovative offerings.
Henrik HenrikssonCEO of H2 Green Steel.
Starting with the plant in Boden in Sweden, H2 Green Steel will leverage Hitachi Energy’s capabilities to optimize customers’ value chain to plan, build, operate and maintain the power infrastructure, which includes IT and operational technology (OT). As part of the agreement Hitachi Energy will also become a customer of H2 Green Steel at start of production, in addition to stepping in as an investor in the company.
Achieving carbon-neutrality globally requires efforts from all industries to speed up the energy transition through collaboration. This collaboration with H2 Green Steel is a pioneering example of how we are creating benefits for our customers. We are supporting H2 Green Steel’s electrification project and at the same, we are able to secure green steel for our products which is in line with our purpose of advancing a sustainable energy future for all.
Johan SöderströmHead of Europe, Middle East and Africa at Hitachi Energy.