H2 Green Steel (H2GS) and Iberdrola have signed a partnership to build a 1 GW plant to produce Green Hydrogen on the Iberian Peninsula. Several locations are currently under consideration. Iberdrola will deliver renewable energy to the plant, while the DRI production, including any downstream Green Steel production processes, will be owned and operated by H2 Green Steel.
Green hydrogen from the new plant will power a direct reduced iron (DRI) furnace with a capacity to produce up to 2 million tonnes per year of pure pig iron, which would allow the production of green steel with a 95% reduction of CO2 emissions. The production is planned to start in 2025 or 2026. The companies would like to co-locate a Green Steel production facility capable of producing 2.5-5 million tons of Green flat steel per year, together with the plant.
The project will be financed through a combination of public funds, green project financing instruments and own funds. With an estimated budget of EUR2 billion (US$2.26 billion), the production of green hydrogen will contribute to the transition of heavy industry towards sustainable operations.
