UK-based steel service center SPM (Steel Processing Midlands) has entered into a supply agreement with H2 Green Steel. The green steel will be delivered from H2 Green Steel’s flagship plant in northern Sweden and will amount to 25 percent of SPM’s annual volumes.
Steel Processing (Midlands) Ltd is a privately owned steel and processing business with customers primarily in the automotive and construction industries based in the UK.
H2 Green Steel was launched 2021 with a purpose to accelerate the decarbonization of hard-to-abate-industries, starting with steel. Construction of a modern and fully digitalized steel plant in Northern Sweden has begun. It will be the first new steel mill in Europe in over half a century. The plant will also include a facility for green hydrogen production from renewable electricity, as well as production of green direct reduced iron which will feed the steel mill. By using green hydrogen instead of coal, we can reduce CO2 emissions from the reduction process with up to 95 percent. By 2030 latest, annual production will be at 5 million tonnes of green steel.
The contract between SPM and H2 Green Steel is a 5-year agreement valued at about €125 million in which SPM secures 25 percent of its future annual steel demand.
Validating the business case for sustainably produced steel
“This agreement demonstrates leadership by SPM in its market segment, and it is a clear sign that businesses of all sizes are validating the business case for sustainably produced steel. For H2 Green Steel, this is a landmark in terms of the English steel market, and we are very impressed by SPM’s progressive approach. SPM’s success builds on the quality of their products and services as well as their values, which is a very good fit for us,” says Carl-Erik Lagercrantz, vice chairman of H2 Green Steel.