GreenIron Obtain Financing to Construct Hydrogen-based Iron Plant
Sweden is known to be a powerful force within the European hydrogen movement, driving significant advancements in the industry. With it’s rich natural resources, long coastline and forward-thinking government this is no surprise.
‘Ovako’s’ continued investment in the hydrogen-fuelled Smedjebacken steel mill shows the nation’s commitment to reducing carbon emissions in manufacturing industries.
Additionally, ‘GreenIron’ recently secured 100 million SEK in financing to support an all-new hydrogen project for sustainable iron production. These two developments demonstrate Sweden’s proactive approach to integrating hydrogen into industrial processes.
GreenIron ready to deliver fossil-free iron in Sandviken
The Swedish company, ‘GreenIron’ have obtained 100 million Swedish Krona of additional financing to continue the construction of their hydrogen-based iron plant. The money was provided by existing shareholders.
In April, GreenIron obtained the environmental permit for its first full-scale production unit in Sandviken, Sweden. Construction of the facility is now ongoing, and GreenIron is approaching commercial production of fossil-free iron by the end of 2024.
To secure this further expansion, GreenIron has raised SEK 100 million of additional capital from existing shareholders. This also paves the way for a larger financing round within the next six to nine months.
Edward Murray, CEO of GreenIron commented,
“We are grateful for the confidence that our shareholders have shown in our technology and our ability to deliver fossil-free material. This enables us to continue our journey towards our goal of 300 furnaces by 2030, in the pursuit of a sustainable future.
Our current focus lies in establishing production in Sandviken and delivering fossil-free iron as soon as possible. GreenIron thereby paves the way for the mining and metal industries to adjust their production with the aim of reducing CO2 emissions.”
Ovako continues investment in hydrogen-fuelled steel mill
Stockholm-based company ‘Ovako’ is set to further its commitment to decarbonisation with a new investment of 9 million (approximately 100 million Swedish Krona) in the Smedjebacken steel mill.
The company is most notably known for its innovative hydrogen-fuelled plant in Hofors. The Smedjebacken mill is an expansion of their successful first venture into decarbonising the steel industry.
The plant will use a giant 20MW array of electrolysers to produce 3,500 cubic meters of fossil-free hydrogen per hour and is expected to halve existing CO2 emissions.
The company is known for its positive attitude to decreasing its emissions, with much of its key equipment – from the large electric arc furnaces that melt the scrap steel to the heat treatment furnaces used to introduce specific properties – now entirely electrified and powered by Sweden’s plentiful supply of fossil-free electricity.
Specialising in clean, high-quality steel, they tailor their product to the needs of customers in the bearing, transport, and manufacturing sectors. Ovako aims to ensure lightweight and resilient products but also enables more sustainable and environmentally friendly solutions. Ovako’s mission statement defiantly reads,
“We stand at the forefront of the steel industry. Our purpose is clear: Together we create steel for a decarbonised society.”
“This is a significant step towards realising our vision of creating steel for a decarbonised society. By modernising the Smedjebacken steel mill with advanced technologies, we are not only enhancing our production efficiency but also reinforcing our commitment to sustainability and energy efficiency. This investment sets a robust platform for future advancements and positions us at the forefront of the steel industry’s environmental responsibility, “says Marcus Hedblom, President and CEO Ovako Group.
This state-of-the-art facility is scheduled to be operational after the summer in 2026, marking another milestone in Ovako’s journey towards sustainable and efficient steel production.
In conclusion, Sweden’s dedication to hydrogen technology is evident through Ovako’s investments in sustainable steel production and GreenIron’s significant financing for hydrogen projects. These efforts not only enhance Sweden’s industrial sustainability but also reinforce its global leadership in green (and clean) technology.
