Kobe Steel's US unit signs technology deal with Sweden's H2 Green Steel

Japanese steelmaker Kobe Steel officially confirmed on 12 October that H2 Green Steel Company Ltd (H2GSAB), a Swedish startup that intends to produce green steel, has placed an order with its wholly-owned subsidiary, Midrex, for a 100% hydrogen-based DRI plant from 2025 onwards.

Kobe Steel will invest in H2 Green Steel by taking advantage of this order. The amount of the order and investment in H2 Green were not disclosed. The annual production capacity of reduced iron is 2.1 million tonnes (mnt). The plant is expected to start operations in CY25. Following that, the capacity will be increased to 5 mnt by 2028 and beyond.

Green steel method uses hydrogen instead of fossil fuels as a reduction material for iron ore. This technology can greatly decrease carbon dioxide (CO2) emissions compared to traditional operations that utilise natural gas as a reducing material. H2 Green will also use electricity generated by hydroelectric power plants to produce hydrogen via hydroelectric splitting, allowing it to offer green steel that emits no CO2.

Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.