Swedish startup company H2 Green Steel announced plans for a large-scale steel plant based on a fossil-free manufacturing process targeting large European OEMs. Large scale production is set to  begin in 2024 with plans for the plant to have a capacity of 5 MMt by 2030.

The project includes a green hydrogen plant as part of the steel factory. The company is backed by Vargas Holding AB, one of the first shareholders in battery maker Northvolt AB. The plant's size is planned to be approximately 800 MW, with its end product replacing coal and coke in the steel manufacturing process.

H2GS will be located in the Boden-Luleå region, which also hosts a number of companies and research institutions within the metals and mining industry. The region offers unique conditions for fossil-free steel production with access to abundant energy from renewable energy sources, high-quality iron ore and a large port in Luleå. 

The project will increase Swedish net export value by around SEK 30 B.