Irish building materials supplier Kingspan has agreed to a long-term investment partnership with Sweden’s H2 Green Steel (H2GS) to supply carbon-free raw material.
Kingspan will fund H2GS’ new fossil-free steel production plant in North Sweden for an undisclosed amount, according to a statement by the steelmaker on Friday. In exchange, H2GS will supply material that will emit less than 0.1mt of carbon dioxide per tonne used compared to traditional steel that emits 2mt of greenhouse gases per tonne.
H2GS plans to raise €2.5bn in the first phase of financing through equity partners like Kingspan. The new plant’s production will begin in 2024, with an estimated annual capacity of 4.5mn mt.
Kingspan has over 100 factories worldwide with a global workforce of 13,500 people.