H2 Green Steel is studying the possibility of building a plant in Canada

The potential project will require investments of €3.2-6 billion

The Swedish start-up H2 Green Steel is studying the possibility of building a plant for the production of green steel in Canada, informs Bloomberg.

A potential project in Quebec could be located on a 500-acre site in Sept-Îles, northeast of Montreal. It will require an investment of €3.2-6 billion. Under one plan, H2GS will build a plant to produce direct reduction iron, which will then be exported, and a giant electrolyser powered by renewable energy sources, which will supply the plant with hydrogen.

A more ambitious scenario could include a full-cycle steel plant, similar to the one in Boden.

As Henrik Henriksson explained, CEO of H2GS, it will depend on the dialogue the company has with Canadian authorities. The Swedish startup needs 700 MW of electricity – about 1.5% of Quebec’s actual capacity. Peak demand can create bottlenecks in the grid in the winter, and state-owned Hydro-Quebec has become more selective about eligible projects.

H2GS executives are also looking to capitalize on access to the St. Lawrence River for shipping, and regional iron ore reserves, including Iron Ore Company of Canada and Champion Iron.

«We saw pretty early on that Quebec had this ideal location with a combination of ready logistics and some quality iron ore,» said Kaisa Rittberg-Wahlgren, executive vice president of H2GS.

However, the main condition for the Swedish company is access to green energy, without which the project is impossible.

In addition to Quebec, H2GS is also conducting a feasibility study for Texas (USA), betting on the rapid development of wind and solar energy.

As GMK Center reported earlier, H2 Green Steel signed 7-year agreement worth about €150 million for the supply of green steel with a group of steel and aluminum service centers Roba Metals (Netherlands). As part of the deal, the Netherlands-based company will work to develop the regional green steel market, while processing and distributing H2 Green Steel steel products to customers through its service center in Genk, Belgium.

Also, H2 Green Steel was recently established forms a sample of attracting financing and has already sold a significant part of the future steel.