Hitachi Energy has signed a Memorandum of Understanding with H2 Green Steel to leverage electrification, digitalization and hydrogen to support the decarbonization of the steel industry. The MoU outlines a collaboration which is built on three pillars1. Hitachi Energy’s equity investment in H2 Green Steel2. Products and services from Hitachi Energy that are needed to construct and improve the electrical infrastructure to power steel production and giga scale electrolyzer plants3. Green steel to be used in the manufacturing of Hitachi Energy’s products, once H2 Green Steel starts productionStarting with the plant in Boden, H2 Green Steel will leverage Hitachi Energy’s capabilities to optimize customers’ value chain to plan, build, operate, and maintain the power infrastructure that includes IT and operational technology. H2 Green Steel, a Swedish industrial start-up founded in 2020, is on a mission to accelerate the global steel industry’s greatest technological shift by eliminating almost all of carbon dioxide emissions from the steel production process. It is planning to build its first fossil-free steel plant in Boden in Luleå region of Sweden, alongside a giga scale electrolyzer plant for the production of green hydrogen. The steel production in Boden will use green hydrogen instead of coal in a fully integrated process using end-to-end digitalization, which reduces up to 95% CO2 emissions compared to traditional steelmaking Production will begin in 2025 and by 2030, H2GS will have annual production capacity of 5 million tonnes of high-quality green steel.This initiative has been developed in close collaboration between Vargas, and several strategic and financial investors that are global leaders in sustainability and digitalization. H2GS is in the process of closing its series A equity financing of EUR 50 million from a select group of investors, including Vargas, Scania, SMS group, BILSTEIN GROUP, EIT InnoEnergy, Cristina Stenbeck, Daniel Ek, Altor Fund V, and IMAS Foundation. The total finances for the first phase of the project amounts to approximately EUR 2.5 billion, which will be raised through a combination of equity and green project financing. Morgan Stanley, Societe Generale and KfW IPEX-Bank, are acting as financial advisors to H2GS. Sweco is advising in the engineering and permit process.