H2 Green Steel will be a large-scale, fully integrated steel producer based on a fossil-free manufacturing process targeting large European OEMs. H2 Green Steel will be located in Boden-Luleå – a region in northern Sweden that offers unique conditions for fossil-free steel production. The project includes the world’s largest green hydrogen plant, as an integrated part of the steel production facility. Production will begin in 2024 and by 2030, H2 Green Steel will have annual production capacity of five million tons of high-quality steel.

H2 Green Steel will build a large scale, integrated, green field steel manufacturing facility in the region of Norrbotten in northern Sweden, to enable production of fossil-free steel at an unbeatable global cost position. The project is built on the experience and lessons learned from the establishment of Northvolt. The business model is based on a close partnership with strategic customers, including a deep collaboration on product development, process technology, recycling strategies and logistics.

This initiative has been developed in close collaboration between Vargas, and several strategic and financial investors that are global leaders in sustainability and digitalization. The total financing for the first phase of the project amounts to approximately €2.5 billion, which will be raised through a combination of equity and green project financing.

H2GS is expected to create 10,000 direct and indirect jobs in the Norrbotten region, and the project will increase Swedish net export value with around SEK 30 billion. Green Steel will also contribute to building a knowledge cluster in Norrbotten – where industry, suppliers, municipalities, authorities, and academia work together to accelerate the efforts to battle climate change, create new jobs and strengthen Swedish competitiveness.