Sweden-based H2 Green Steel has signed a seven-year contract for 2TWh of renewable electricity per year from the Norwegian hydropower company, Statkraft.
In the power purchase agreement, announced today (June 8), H2 Green Steel secured a long-term supply of 14TWh of renewable electricity over the period 2026-2032, with 2.5 million tonnes of green steel set to be produced annually.
The power will be supplied to the steel manufacturer’s plant in Boden, Sweden, which is set to be home to an 800MW electrolyser, to produce green hydrogen in order to make green virgin iron for steel production.
These contracts seemingly further cement H2 Green Steel’s commitment to cleaning up the steel production industry.
H2 Green Steel announced in May (2022), that it had signed contracts to produce over 1.5 million tonnes of green steel annually over the next five to seven years.
Luisa Orre, Chief Procurement Office at H2 Green Steel, said, “In Statkraft we have a partner and a big player that takes true responsibility to support ambitious Nordic sustainable industry initiatives.
“In supplying green electricity, they show a real commitment to making Sweden’s industry renewable within the coming decade.
“This is an important step in building our portfolio of renewable electricity, and we will continue to partner with front-runners in the industry that share our values and that can offer renewable electricity at competitive prices.”
H2 View understands the delivery of electricity includes Guarantees of Origin for renewable energy, sourced from Stratkraft’s hydropower plants in Northern Sweden.
Hallvard Granheim, Executive Vice-President of Markets and IT at Stratkraft, commented, “As Sweden’s fourth largest generator of electricity, we are proud to contribute with a long-term power contract to a new industrial project in Northern Sweden.
“The agreement confirms Statkraft’s position as a key supplier of renewable energy to power-intensive industry in the Nordics.”
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