Hitachi Energy partners with H2 Green Steel for equity investment, energy solutions and green steel
Stockholm, July 20, 2022 – 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,” says Henrik Henriksson, CEO 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,” says Johan Söderström, Head of Europe, Middle East and Africa at Hitachi Energy.
For further information
Karin Hallstan, Head of Public and Media Relations
Tel +46 76 842 81 04
press@h2greensteel.com
About H2 Green Steel
H2 Green Steel (H2GS AB) was founded in 2020 with the ambition to accelerate the decarbonization of the steel industry, using green hydrogen. Steel, which is one of the world’s largest carbon dioxide emitters, is the company’s first business vertical. The founder and largest shareholder of H2 Green Steel is Vargas, which is also co-founder and one of the larger shareholders in Swedish battery maker Northvolt. H2 Green Steel is headquartered in Stockholm, Sweden, with its first green steel plant under development in Boden, northern Sweden. www.h2greensteel.com
About Hitachi Energy Ltd.
Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We serve customers in the utility, industry and infrastructure sectors with innovative solutions and services across the value chain. Together with customers and partners, we pioneer technologies and enable the digital transformation required to accelerate the energy transition towards a carbon-neutral future. We are advancing the world’s energy system to become more sustainable, flexible and secure whilst balancing social, environmental and economic value. Hitachi Energy has a proven track record and unparalleled installed base in more than 140 countries. Headquartered in Switzerland, we employ around 38,000 people in 90 countries and generate business volumes of approximately $10 billion USD.
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