Norway-headed renewable power major Statkraft ASA has secured a seven-year power purchase agreement for 2 TWh per year of electricity to H2 Green Steel AB (H2GS) for its operations in Boden, Sweden.
In this new power purchase agreement (PPA) with Statkraft, H2 Green Steel secures a long-term yearly supply of renewable electricity produced in the period 2026-2032.
The delivery includes Guarantees of Origin (GO) for renewable energy, sourced from Statkraft’s hydropower plants in Northern Sweden.
In Statkraft we have a partner and a big player that takes true responsibility to support ambitious Nordic sustainable industry initiatives. In supplying green electricity, they show a real commitment to making Sweden’s industry renewable within the coming decade, said Luisa Orre, Chief Procurement Officer, H2 Green Steel.
In the first phase, H2 Green Steel will produce 2.5 million tonnes of green steel annually.
In order to deliver green steel to European customers, a large amount of renewable electricity is needed, and now in place as H2 Green Steel teams up with Statkraft, Europe’s largest renewable energy producer for the supply of renewable power.
This is an important step in building our portfolio of renewable electricity, and we will continue to partner with front-runners in the industry that share our values and that can offer renewable electricity at competitive prices, Luisa Orre said.
H2 Green Steel’s plant in Boden will be home to an ~800MW electrolyzer producing the green hydrogen needed to make green virgin iron for steel production.
As Sweden’s fourth-largest generator of electricity, we are proud to contribute with a long-term power contract to a new industrial project in Northern Sweden. The agreement confirms Statkraft’s position as a key supplier of renewable energy to the power-intensive industry in the Nordics, said Hallvard Granheim, EVP, Markets and IT, Statkraft.
The giga-scale electrolysis plant, one of the largest in the world, will be powered by renewable electricity.
We also look forward to supporting the build-out of new renewable power in the region, and we are open to buying power from projects in all stages, sizes, and forms, in baseload or pay-as-produced offtakes, ended Luisa Orre.