EU Approves Funding for Sweden's H2 Green Steel

The European Commission has approved funding for H2 Green Steel to build a large-scale green steel plant in Boden, Sweden.

This project includes the construction of a 690 MW hydrogen electrolyzer, one of the largest in the world, a direct reduced iron (DRI) plant using hydrogen fuel, two electric arc furnaces, and cold rolling and finishing facilities.

The European Commission's review aimed to determine if the subsidy complies with state aid regulations, concluding that Sweden's €265 million subsidy is necessary and appropriate to promote green steel production, with positive effects outweighing potential distortions to EU competition and trade.

H2 Green Steel aims to build Europe’s first large-scale steel plant that exclusively uses hydrogen derived from renewable energy sources.