The European Commission has approved a €265 million Swedish measure to support H2GS AB in establishing a large-scale green steel plant. This initiative aligns with the EU Hydrogen Strategy, the European Green Deal, and the Green Deal Industrial Plan targets. It aims to reduce dependence on Russian fossil fuels and accelerate the green transition.
Supporting Green Energy Policies
The Swedish measure, partially funded through the Recovery and Resilience Facility (RRF), aims to develop a green steel plant in Boden, Sweden. The plant will include one of the world’s largest electrolysers with a capacity of 690 megawatts, a direct reduction plant operating with renewable hydrogen, two electric arc furnaces, and cold rolling and finishing facilities. These installations are expected to start operating in 2026, producing 2.4 million tonnes of green steel per year. The use of renewable energy in the manufacturing process will neutralize up to 87% of greenhouse gas emissions compared to traditional steel production methods.
Financial and Environmental Impact
The €265 million aid will take the form of a direct grant, contributing to a total investment of €6 billion primarily financed by private investments. The project has also been selected for support under the EU Innovation Fund and received financing from the European Investment Bank. H2GS has committed to sharing technical know-how gained from the project with industry and academia, promoting broader adoption of green energy technologies.
EU Commission’s Assessment
The Commission evaluated the measure under EU State aid rules, specifically Article 107(3)(c) of the Treaty on the Functioning of the European Union. The assessment confirmed that the measure facilitates the development of an economic activity, supports key EU policy objectives, and has an incentive effect. The aid is necessary and appropriate to promote green steel production, and it is proportionate to the financing needs. Additionally, safeguards are in place to limit undue distortions of competition. If the project generates extra net revenues, the beneficiary will return part of the aid to Sweden, ensuring fair competition.
Advancing Solar Energy Market Trends
This green steel plant project exemplifies the EU’s commitment to advancing green energy policies and investments. By integrating renewable hydrogen and advanced energy storage solutions, the initiative supports the broader goal of a sustainable and competitive European industry. The project will significantly contribute to the solar energy market and energy storage developments, aligning with ongoing solar market analysis and trends.
Source：miragenews.com
