H2 Green Steel

H2 Green Steel (rebranded as Stegra in 2024) is a pioneering Swedish steel manufacturer founded in 2020 with the ambitious goal of revolutionizing the steel industry through decarbonization. The company is building Europe's first large-scale green steel plant in Boden, Sweden, utilizing green hydrogen instead of coal to produce steel with up to 95% less CO2 emissions compared to traditional blast furnace technology.

Founded by Vargas Holding, the same investment firm behind Northvolt, H2 Green Steel has secured unprecedented funding of close to €6.5 billion to bring its vision to reality. The company's flagship facility in Boden, located 45 miles south of the Arctic Circle, features Europe's largest green hydrogen electrolyzer (800MW), a MIDREX H2™ DRI plant, and a downstream steel mill supplied by SMS Group. The plant is expected to begin operations by the end of 2025, with commercial production ramping up in 2026, ultimately reaching an annual capacity of 5 million tonnes of green steel by 2030.

Under the leadership of CEO Henrik Henriksson, former CEO of Scania, H2 Green Steel has attracted major automotive and industrial customers including Volvo Group, Mercedes-Benz, Porsche, and IKEA's parent company Ingka Group. The company has pre-sold over half of its planned production capacity, achieving a 20-30% price premium over conventional steel. With more than twenty investors ranging from the founder of Spotify to well-known family offices and industrial corporations, H2 Green Steel represents a transformative approach to one of the world's most carbon-intensive industries, which accounts for 10% of global CO2 emissions.

The company's technological innovation centers on replacing coal with green hydrogen in the steelmaking process. By using renewable electricity to power a giga-scale electrolyzer, H2 Green Steel produces green hydrogen that refines iron ore into green iron, emitting only steam (water) rather than CO2. This breakthrough technology positions the company at the forefront of industrial decarbonization, demonstrating that heavy industry can transition to sustainable production methods without compromising quality or competitiveness.