Sweden Strives for Genuine Green Steel
HYBRIT and H2 Green Steel have started projects in Sweden with the goal of producing 10 million tonnes (mt) of fossil fuel-free crude steel (green) per year by 2030. Success is of course due to the numbers coming together, or rather. , the numbers go down.
To make green steel, you need green hydrogen; To make green hydrogen you need cheap renewable energy. HYBRIT and H2 Green Steel believe this comes from wind power at an LCOE of $ 30 per megawatt hour. As the costs of renewable energy are constantly declining, it is likely that they will be able to achieve this.
Add to that the rising cost of coal and the pressure to decarburize, and you have a winner. It is expected that a carbon dioxide credit will be available to green steel producers of about $ 85 per tonne.
Sweden is a relatively small producer of steel and the goal of 10 mt is three times as much as is now produced in the Scandinavian country. But: “The country has Europe’s largest iron ore reserves and excellent renewable energy resources – two primary conditions for the production of green hydrogen and carbonated crude steel,” writes Wood Mackenzie’s chief analyst Sohaib Malik.
“According to Malik, at a balanced electricity cost of 30 dollars per megawatt hour, wind power is a very economical source for electricity production in Sweden today. At the same time, further cost reductions are expected with better financing structures for onshore wind power, lower capex for land and sea installations, technical optimization for asset management and state aid for offshore network infrastructure. “
Another part of the green steel mixture that must be included is the method for producing green hydrogen – in this case alkaline electrolysis technology. The costs associated with this are expected to be halved by 2030, enabling an equalized cost of $ 1 per kilogram of green hydrogen with onshore wind power.
Expect to see global interest in this new frontier to reduce climate change. I know Twiggy Forrest is interested.
Source: Mining.com
Photo by David Becker on Unsplash
Do you appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica member, supporter, technician or ambassador – or patron of Patreon.