The European Commission has announced €265m ($284m) will be made available for H2 Green Steel to develop a large-scale green steel plant.

The facility, located in Boden, Sweden, will incorporate a 690MW electrolyser, a direct reduction plant operating with renewable hydrogen, two electric arc furnaces, and cold rolling and finishing facilities.

H2 View understands that these installations will begin operating in 2026 and are expected to produce 2.4 million tonnes of green steel per year.

The €265m will be partially funded through the Recovery and Resilience Facility (RRF) following the Commission’s positive assessment of the Swedish Recovery and Resilience Plan, taking the total investment to more than €500m ($536m).