H2 Green Steel signs 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 chooses 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.
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 some of their in- and outflow of intermediate goods and products.
"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.
For H2 Green Steel, who aims to begin production of green steel in Boden as early as end of 2025, the agreement allows them to plan for a logistics and transportation solution involving cargo flow through the port in Luleå.
“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 further information
Karin Hallstan, Head of Public and Media Relations, phone: +46 76 842 81 04, email: press@h2greensteel.com
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 is headquartered in Stockholm, Sweden, with its first green steel plant under development in Boden, northern Sweden. www.h2greensteel.com
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.