EC approves €265 million in Swedish aid for H2 Green Steel plant

The European Commission has approved €265 million in state aid to Sweden to support H2 Green Steel in setting up a green steel plant. This is stated in the press release of the institution.

The event will be partially funded through the Recovery and Resilience Fund (RRF), and the assistance will take the form of a direct grant.

The large-scale H2 Green Steel plant in Boden, Sweden, will include the construction of one of the world’s largest electrolysers with a capacity of 690 MW, a direct reduction unit running on renewable hydrogen, two electric arc furnaces, and cold rolling and finishing facilities.

The new facilities are expected to start operating in 2026 and produce 2.4 million tons of green steel per year.

According to the report, H2 Green Steel has committed to actively sharing the experience and technical know-how gained from the project with industry and academia.

The project, which has a total cost of €6 billion, will be financed primarily by private investment. However, it was also selected for support under the EU Innovation Fund and received funding from the European Investment Bank.

In January 2024, H2 Green Steel raised new financing for its Boden plant. The Swedish startup signed final debt financing agreements worth €4.2 billion for its project and increased the previously announced amount of equity capital raised by €300 million.

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