Iberdrola and H2GS to develop €2.3bn green hydrogen-to-steel project

The companies plan to develop a 1GW green hydrogen facility and produce 2mn t of direct-reduced iron by 2026

Spanish utility Iberdrola and Swedish startup H2 Green Steel (H2GS) have partnered to develop a €2.3bn ($2.6bn) green hydrogen-to-steel project in the Iberian Peninsula. Iberdrola and H2GS plan to develop a 1GW green hydrogen plant by 2026 using renewable energy supplied by the former. The project will use the hydrogen to produce 2mn t/yr of direct-reduced iron, a feedstock for steel. The two companies will also explore co-locating a steelmaking facility with capacity to produce 2.5-5mn t/yr of flat steel. The use of green hydrogen could reduce steelmaking CO₂ emissions by 95pc, the firms claim. 2mn t/yr – Direct-reduced iron to be produced by project “Green hydrogen will be a critic