Green hydrogen-to-steel pioneer H2 Green Steel gets a €265m ($284m) grant from the Swedish government, after the EU gave the green light for the measure under state-aid rules
Swedish steel start-up Stegra — Formerly as H2 Green Steel — has received the first €100m ($112m) of €265m in state aid allocated by the government of Sweden
Stegra is in the midst of building a green steel plant in Boden, northern Sweden, which will feature more than 700MW of electrolyser capacity to supply hydrogen for direct iron reduction, with the sponge iron then processed into steel via a renewables-powered electric arc furnace
The €265m award, to be granted in part from Sweden’s Covid-recovery funds, takes the total state funding for the project to over €500m, following its award of €250m from the EU’s Innovation Fund last year

However the project amounts to the total of €6.5bn estimated for, which is otherwise being financed by a massive coalition of equity backers and debt funding to the tune of billions of euros
H2 Green Steel backs green sales contracts. it has secured with giants such as Porsche and Ikea, at premiums of 20-30% on the market price, for the scheme’s bankability
This plant will also host one of the largest electrolysers in the world. Reducing the climate impact of steelmaking is important for the achievement of the EU’s target of climate neutrality by 2050
The new facilities are expected to start operating in 2026 and produce 2.4 million tons of green steel per year