A Swedish company supported by wealthy European families is studying the possibility of setting up a “green” steel plant in Quebec, a billion-dollar project that might create more than 1,000 jobs.
Founded in 2020, H2 Green Steel has so far raised nearly $500 million from numerous investors, including the powerful Wallenberg (Ericsson), Agnelli (automotive), Maersk (transportation) and Ek (Spotify) families as well as Volkswagen, Mercedes -Benz and the IMAS Foundation (Ikea).
Last month, Economy Minister Pierre Fitzgibbon met with H2 representatives in Davos, Switzerland, as part of the World Economic Forum.
Then, last week, the CEO of H2 Green Steel, Henrik Henriksson, was in Sept-Îles to meet with local decision-makers and members of the First Nations.
In Montreal, he also attempted to raise financing from Canadian investors.
In northern Sweden, H2 plans to operate a first “green” steelworks from 2025, a project valued at $7 billion.
Iron ore and megawatts
“As in northern Sweden, there is a lot of iron and hydroelectricity in Quebec,” said Mr. Henriksson in an interview with The newspaper.
In Quebec, ArcelorMittal and Rio Tinto already produce steel using electric arc furnaces, but part of the process requires natural gas. H2 Green Steel wants to replace this fossil fuel with “green” hydrogen, that is, produced using hydroelectricity.
H2 would generate virtually no greenhouse gases (GHG) while the steel industry is currently responsible for 7% of all GHG emissions in the world.
“Why export hydroelectricity and iron ore when we can add a lot of value by using these resources to create jobs, spark technological development and export green steel? asks Henrik Henriksson, a former manager of Scania, a subsidiary of Volkswagen.
A good use of our electricity?
The problem is that the production of hydrogen requires a lot of electricity while Quebec is starting to run out. In Sweden, H2 benefits from an “abundant” and “competitively priced” hydroelectric supply, said company spokeswoman Karin Hallstan.
Normand Mousseau, professor of physics at the University of Montreal, rightly deplores the dependence of green steel producers on low hydroelectricity rates.
“At the moment, these projects cannot exist without eternal subsidies,” he argues.
“Unfortunately, there aren’t many other options,” replies Jérôme Gosset of the specialist firm Pyonnier. Steel production is one of the most difficult sectors to decarbonise. »
H2 GREEN STEEL AND BREF
Fondation : 2020
Location of the first steelworks: Boden, in Suede
Funding raised: $5.5 billion, including $5 billion in the form of borrowings
Countries under study for the next factories: Portugal, Canada, United States, Brazil
