Apr, 2021 - By WMR
H2 Green Steel (H2GS) is operating with a budget of around US$ 3 billion dollars and will use hydrogen-produced with renewable energy from the Swedish region Boden-Luleå.
In a conventional production, coke reduction can be replaced with hydrogen, which results in a process that releases water, and hydrogen can also be used to power the arc furnaces, giving consumers a completely stainless steel production pipe. All the major steel manufacturers in the world think the same and reduce its emissions. There are many incentives for low-end customers such as automakers to enter the board with green steel as it is available. The new development in Northern Sweden, led by the current CEO of Scania, aims to gain a certain market volume ahead of time.
By 2020, the world produced around 1,864 million tons of iron, with over 75% of the energy used to make steel from coal, each sending about 1.9 tons of carbon dioxide into the atmosphere. The world cannot pass through this ubiquitous metal at this time, owing steel production is responsible for between 7-8 percent of global warming each year. This makes it a major target for decarbonisation efforts, and is one of the key areas where hydrogen is expected to be the most expensive in a decade.
Steel production accounts for around 8% of the global carbon emissions each year, however, hydrogen-based production provides an opportunity to make the process completely emissions-free. By 2030, H2GS expects to produce five million tons of high-quality zero-emissions steel annually. Moreover, like all hydrogen-based programs, the H2GS project will require the price of green hydrogen to come down dramatically to realize its full potential. Most of the hydrogen produced today is gray, or polluted, which usually involves the use of fossil fuels such as natural gas or coal. This project is another encouraging indicator of the increase in food for major investors who are showing decarbonisation initiatives, which include more risks and longer waiting for investment returns than other areas where investors can invest their money.