To close the loop, H2GS intends only to use hydrogen produced from renewable energy sources. Furthermore, the electricity supply of the new plant, where every step of the production flow will have been “electrified“, will also come from clean energy sources. In this respect, H2GS claims that ‘the region offers unique conditions (…), with access to energy from renewable sources, high quality iron ore, a large port in Luleå and a world-leading group of experts in metallurgy and steel production’.
Despite H2GS’s plans, the price of hydrogen produced with electricity (i.e. energy that can be renewed and therefore “green”) is still far from competitive. Aware of the difficulties that this fact entails, the company assures that “green hydrogen (…) has quickly become an energy solution that is attracting considerable investment, as society takes accelerated steps to achieve climate objectives“. Therefore they are confident that, “with cost reduction at every step, digitalisation of automation, a fully integrated production process, and access to energy from renewable sources, we will produce up to five million tonnes of steel without fossil fuels by 2030″. In any case, the H2GS initiative is certainly a further step towards achieving the UN Sustainable Development Goals and we wish them every success.