EU approves €265 million Swedish Aid for green steel plant

Green Forum
The European Commission has given the green light, under EU State aid rules, to a €265 million Swedish measure, partly funded through the Recovery and Resilience Facility (RRF), to support H2GS AB in establishing a large-scale green steel plant.

This initiative aligns with the EU Hydrogen Strategy, the European Green Deal, and the Green Deal Industrial Plan objectives, aiming to reduce dependence on Russian fossil fuels and accelerate the green transition outlined in the REPowerEU Plan.

Key points of the Swedish measure include:

The funding, part of Sweden's Recovery and Resilience Plan, will aid H2GS AB in developing a green steel plant in Boden, Sweden.
The project includes setting up one of the world's largest electrolyzers (690-megawatt capacity), a direct reduction plant using renewable hydrogen, two electric arc furnaces, and cold rolling and finishing facilities.
Operations are slated to commence in 2026, targeting an annual production capacity of 2.4 million tonnes of green steel, significantly reducing greenhouse gas emissions compared to traditional steel production methods.
The aid, provided as a direct grant, supports a total project investment of €6 billion, primarily financed by private sector investments, complemented by support from the EU Innovation Fund and financing from the European Investment Bank.
The Commission's assessment under EU State aid rules concluded that the measure supports economic activity aligned with low-carbon processes, while effectively promoting EU policy goals without unduly distorting competition. It includes safeguards such as a claw-back mechanism and knowledge-sharing commitments to mitigate potential market distortions and enhance industry-wide benefits.

Based on these findings, the Commission approved the Swedish measure, highlighting its positive impact on advancing sustainable steel production within the EU.

RECOMMENDED
EU allocates €4.8 billion to net-zero innovation
Environment

EU allocates €4.8 billion to net-zero innovation

The European Commission has selected 85 innovative net-zero projects to receive €4.8 billion in grants from the Innovation Fund, helping to put cutting-edge clean technologies into action across Europe.

RECOMMENDED FROM THE HOME PAGE
Real estate

NEPI Rockcastle targets green energy by 2026

NEPI Rockcastle plans to transform its shopping centers in Romania into local energy hubs and fully meet their energy needs with green energy by the end of 2026.

Industry

EIB and Commerzbank strengthen Europe's wind industry

The European Investment Bank (EIB) is using again its €5 billion initiative to support manufacturers of wind-energy equipment in Europe by extending a €500 million counter-guarantee to Germany-based Commerzbank AG.

READ MORE
Green Forum  |  12 December, 2024 at 9:00 PM
Green Forum  |  12 December, 2024 at 8:00 PM