Swiss-based Hitachi Energy will make an equity investment of an undisclosed size in Swedish start-up H2 Green Steel (H2GS) and provide it with technology to be used in its green steel production and green hydrogen projects.
The partnership will be built on three main pillars that the two firms have outlined in a Memorandum of Understanding (MoU), Hitachi Energy said in a regulatory filing on Wednesday.
In addition to injecting capital into H2GS, Hitachi Energy will provide its Swedish partner with products and services needed to build and operate electrical infrastructure to power its steel production and giga-scale electrolyser plants, starting with its project in Boden, Sweden. The specific site in northeastern Sweden was picked by the Stockholm-based firm to host its first green steel mill that will use green hydrogen coming from an 800-MW electrolyser.
Once H2GS kicks off production, Hitachi Energy will source green steel from the Boden facility and use it in its own products.
H2GS, which was set up in 2020, does not operate any steel mills yet. At the end of 2021, the company entered a joint venture partnership with a goal to build a 1-GW electrolysis plant in the Iberian Peninsula to produce direct reduced iron (DRI) using green hydrogen.
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