Hitachi Energy has signed a memorandum of understanding (MoU) with Swedish industrial start-up H2 Green Steel to leverage electrification, digitalization and hydrogen in support of the decarbonization of the steel industry.

H2 Green Steel aims to eliminate almost all carbon dioxide emissions from the steel production process, and is planning to build its first fossil-free steel plant in Boden, in the far north of Sweden, alongside a giga-scale electrolyzer plant for the production of green hydrogen.

Starting with the plant in Boden, H2 Green Steel will make use of Hitachi Energy’s capabilities to optimize customers’ value chain to plan, build, operate and maintain the power infrastructure that includes IT and operational technology.

Under the plan, steel production in Boden will use green hydrogen instead of coal, in a fully integrated process using end-to-end digitalization, which reduces CO2 emissions by up to 95% compared to traditional steelmaking.

The MoU outlines a collaboration built on three pillars: Hitachi Energy’s equity investment in H2 Green Steel; products and services from Hitachi Energy that are needed to construct and improve the electrical infrastructure to power steel production and giga-scale electrolyzer plants; and green steel to be used in the manufacturing of Hitachi Energy’s products, once H2 Green Steel starts production.

According to the two companies, steel production contributes to about 8% of the world’s global industrial carbon emissions.

 “Achieving carbon neutrality globally requires efforts from all industries to speed up the energy transition through collaborations,” says Johan Söderström, head of Europe, Middle East and Africa at Hitachi Energy.

“We are supporting H2 Green Steel’s electrification project and at the same time, we are able to secure green steel for our products, which is in line with our purpose: advancing a sustainable energy future for all,” he adds.