The Swedish grant will assist H2 Green Steel as it looks to build a large-scale green steel plant in Boden, Sweden. The project includes the construction of a 690-MW hydrogen electrolyzer, which will be one of the largest in the world, a hydrogen-fueled direct reduction plant, two electric arc furnaces, and cold rolling and finishing facilities.

The commission's review was meant to determine whether the grant conforms with state aid rules. It found that the grant “is necessary and appropriate” to promote the production of green steel and that its positive effects outweigh any potential distortion of competition and trade in the EU.

“This EUR265 million Swedish measure will support the establishment of Europe’s first large-scale steel plant based entirely on hydrogen from renewable sources,” said Margrethe Vestager, the commission’s executive vice president in charge of competition policy.

“This plant will also host one of the largest electrolyzers in the world. Reducing the climate impact of steelmaking is important for the achievement of the EU’s target of climate neutrality by 2050. At the same time, we ensure competition is not distorted,” Vestager said.