In a statement, the venture, H2 Green Steel, said that with demand for fossil-free steel on the rise, it is developing plans for a greenfield mill with an integrated giga-scale green hydrogen electrolysis plant. 

“We want to accelerate the transformation of the European steel industry. Electrification was the first step in reducing carbon dioxide emissions from the transportation industry. The next step is to build vehicles from high-quality fossil-free steel,” said Carl-Erik Lagercrantz, board chairman of H2 Green Steel and Vargas Holding, the Swedish investment firm behind the project. 

H2 Green Steel said its business model is based on a close partnership with future customers — large European original equipment manufacturers — with whom it is collaborating on product development, process technology, recycling strategies and logistics. 

The venture said the mill represents an investment of EUR2.5 billion, which will be raised through a combination of equity and green project financing. It is working toward a close on EUR50 million in series A equity financing from a number of investors, including SMS group and BILSTEIN Group. 

The venture hopes to start up the mill in 2024.