H2 Green Steel (H2GS) has secured an additional €4.5bn of funding to help build the world’s first large-scale green steel project, which will incorporate about 1GW of electrolysers, making it the biggest green hydrogen facility in Europe.

The Swedish start-up, founded in 2020, now has close to €6.5bn of financing in place, and is expected to soon take a final investment decision (FID) on its plant in Boden, northern Sweden, which will use a combination of green hydrogen and renewable electricity to produce near-zero-emission steel.

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The global steel industry is responsible for 7-11% of the world’s carbon emissions, as it mainly uses highly-polluting coal as its fuel source.

H2GS — along with some established steel makers such as Thyssenkrupp and ArcelorMittal — aim to replace coking coal with green hydrogen in order to decarbonise the extraction of iron from ore, and then use renewable energy to power electric arc furnaces that can further process the iron into steel.