IPO candidate Thyssenkrupp Nucera (TKAG.DE) will supply more than 30 of its flagship electrolysers, which provide the technology needed to produce carbon-neutral steel via green hydrogen, to Swedish fossil-free steel startup H2 Green Steel.
The deal highlights growing demand for hydrogen technology as a way to decarbonise CO2-heavy industrial production techniques, a field where Europe wants to compete globally with subsidy-rich regions, notably the United States.
Sources told Reuters last month that Thyssenkrupp Nucera, a 66-34 joint venture between Germany’s Thyssenkrupp (TKAG.DE) and Italy’s De Nora (DNR.MI), was targeting a stock market listing in June at a valuation of up to 5 billion euros ($5.5 billion).
Monday’s agreement covers the supply of 20 megawatt Scalum electrolysers that the companies said will provide more than 700 megawatts of installed capacity overall.
A H2 Green Steel spokesperson said the agreement was worth several billion Swedish crowns, declining to comment further.
She said H2 Green Steel expected deliveries to start in late 2024, adding that this was its first announced supplier deal and that it was aiming for total capacity of around 800 megawatt (MW) of electrolysis at the plant in northern Sweden.
Operations there are scheduled to start at end-2025, with a ramp-up planned for a year later.
Green hydrogen is created through renewables-powered electrolysis, whereby water is split into hydrogen and oxygen.
H2 Green Steel is majority-owned by Vargas Holding, which is also co-founder and one of the larger shareholders in battery developer Northvolt, whose biggest owner is Volkswagen (VOWG_p.DE) and which is building a battery factory in northern Sweden.
($1 = 0.9084 euros)