Stockholm /PRNewswire/ - H2 Green Steel and Hydro Havrand have signed an agreement to explore opportunities for developing new large-scale green hydrogen production facilities.
Hydro Havrand, Hydro's green hydrogen company, is teaming up with H2 Green Steel with the aim to accelerate the decarbonization of heavy industry through green hydrogen. Under the agreement, the companies will explore the possibility of producing green hydrogen for off-takers in the Nordics and Brazil.
"With this partnership H2 Green Steel takes an even clearer direction into the green hydrogen economy. When we choose partners to work with, we go to companies that share our values and that truly want to take action to transform hard-to-abate industries. We find that in Hydro Havrand and we complement each other's competences and capacities," says Kajsa Ryttberg-Wallgren, Executive Vice President and Head of Business Unit Hydrogen at H2 Green Steel.
Replacing natural gas and other fossil fuels with hydrogen made from renewable electricity is the key to reducing CO2 emissions in several industrial processes. By investing in hydrogen production, the two companies are aiming to both cut emissions and create sustainable jobs.
"For the hard-to-abate sectors, green hydrogen is key to reach net zero. This partnership is built on our companies' complimentary capabilities in green hydrogen and combine Hydro Havrand's industrial and energy expertise with H2 Green Steel's capabilities in the decarbonization of the steel industry. This demonstrates our resolve to decarbonize hard to abate industry through strong industrial partnerships," says Per Christian Eriksen, Head of Hydro Havrand.
The agreement, in the shape of a Memorandum of Understanding, covers:
- Investigating opportunities in Brazil: The companies are looking into possibilities for a green field project for production of green hydrogen. If realised, the hydrogen production facility will enable approximately 5 million tonnes of green steel through direct iron reduction, in a plant owned by H2 Green Steel, abating approximately 9,5 million tonnes of CO2 per year. In addition, the parties are evaluating supplying green hydrogen to other offtakers in hard to abate sectors.
- Investigating opportunities in the Nordics: As both companies have their base in Nordic countries, they will also explore the potential for a large-scale hydrogen production facility the Nordics.
- Collaborating in areas such as definition of hydrogen production plant design requirements, system standardization and optimization. In addition, combined efforts plan to be dedicated to ensuring security of supply and safe operation of hydrogen production, storage and utilization.
All projects are pending successful feasibility studies and will be subject to obtaining any necessary regulatory clearances. The ambition is to execute projects from the second half of the decade.