In Brazil, the companies are aiming to establish a greenfield project to produce green hydrogen. If realized, the hydrogen production facility will enable approximately 5 million tonnes of green steel through direct iron reduction, in a plant owned by H2 Green Steel, abating approximately 9,5 million tonnes of CO₂ per year. In addition, the parties are evaluating supplying green hydrogen to other off takers in hard-to-abate sectors. The companies are also looking into possibilities for a large scale, green hydrogen facility in the Nordics.

“For the hard-to-abate sectors, green hydrogen is key to reach net-zero. This partnership is built on our companies’ complimentary capabilities in green hydrogen, and combine Hydro Havrand’s industrial and energy expertise with H2 Green Steel’s capabilities in the decarbonization of the steel industry. This demonstrates our resolve to decarbonize hard-to-abate industries through strong industrial partnerships,” says Per Christian Eriksen, Head of Hydro Havrand.

Under the MoU, the parties will also collaborate on topics like hydrogen production plant design requirements, system standardization and optimization. There will be dedicated, combined efforts to ensure security of supply, and safe operations for hydrogen production, storage and utilization.

"With this partnership H2 Green Steel takes an even clearer direction into the green hydrogen economy. When we choose partners to work with, we go to companies that share our values and that truly want to take action to transform hard-to-abate industries. We find that in Hydro Havrand and we complement each other’s competences and capacities,” says Kajsa Ryttberg-Wallgren, Executive Vice President and Head of Business Unit Hydrogen at H2 Green Steel.

In pursuing these opportunities, Hydro Havrand can draw on its energy capabilities as part of Hydro, including Hydro Energy Markets and Hydro Rein, to enable competitive power cost.

All projects are pending successful feasibility studies and market conditions and will be subject to obtaining any necessary regulatory clearances. The ambition is to execute projects from the second half of the decade.