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Jenny Marin, Category Manager Logistics H2 Green Steel and Anders Dahl, CEO Port of Luleå.
Jenny Marin, Category Manager Logistics H2 Green Steel and Anders Dahl, CEO Port of Luleå.

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H2 Green Steel secures agreement with Port of Luleå: A Crucial Step for Both Parties

H2 Green Steel and Port of Luleå have signed a cooperation agreement. Under the agreement, the steel company has designated the port in Luleå as its primary logistics and transportation hub for intermediate goods and products to be transported to and from its new steel mill in Boden. This especially applies to the export of green steel produced with close to zero emissions, which will be supplied to the global market with a planned production start in 2025, followed by volume ramp up throughout 2026.

– A significant and important step for both parties, but especially for the green transition currently taking place with full force in Northern Sweden, says Port of Luleå’s CEO Anders Dahl.

In the fall of 2022, a letter of intent was signed between H2 Green Steel, Port of Luleå and the port’s owner, Luleå Municipality. Throughout 2023, a collaboration agreement has been negotiated and is now signed by both parties. The agreement guarantees H2 Green Steel access to the Port of Luleå and commits the steel company to utilize the port for their in- and outflow of intermediate goods and products.

– The agreement is a milestone. It secures our collaboration with a new customer who is expected to contribute substantial freight volumes within a few years. Additionally, it presents us with a crucial component in our efforts to strategize the expansion of a port that must increase its cargo capacity by several hundred percent by 2030. This expansion is necessary to cater to the requirements of several significant industrial clients who have made substantial investments in growth and the transition towards sustainability, says Port of Luleå’s CEO Anders Dahl.

For H2 Green Steel, who aims to begin production of fossil-free steel in Boden as early as the end of 2025, the agreement allows them to progress and strategize a logistics and transportation solution involving cargo flow through the port in Luleå.

– This new cooperation agreement with the Port of Luleå is yet another important piece of our puzzle in succeeding with our green steel mill in Boden. We have been working very closely with Luleå Municipality and the Port of Luleå since day one of our launch. Thanks to good cooperation and a shared vision, we now have a clear plan for our next steps. We fully understand the challenges that Port of Luleå are facing in securing necessary land as well as financing, and we are grateful that we now can focus on concrete solutions that align with our tight time plan, says Jenny Marin, Category Manager Logistics at H2 Green Steel.

About H2 Green Steel:

H2 Green Steel (H2GS AB) was founded in 2020 with the ambition to accelerate the decarbonization of the steel industry, using green hydrogen. Steel, which is one of the world’s largest carbon dioxide emitters, is the company’s first business vertical. The founder and largest shareholder of H2 Green Steel is Vargas, which is also co-founder and one of the larger shareholders in Swedish battery maker Northvolt. H2 Green Steel has offices in Boden and Stockholm, with its first green steel plant under development in Boden.

About Port of Luleå:

By 2030, Port of Luleå aims to have the capacity to transport three to four times the amount of goods compared to its present capabilities, and handle completely new types of cargo and products. This will require new railway networks, quays, terminal areas, and all-weather terminals. The estimated cost of these developments ranges between seven and ten billion SEK, depending on the scope. Port of Luleå was recently tasked with seeking a solution with external partners who can participate in financing, constructing, and operating the future Port of Luleå. This decision was unanimously approved by Luleå Municipal Council on May 22nd.

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