Bula Gets On Board with Green Steel Startup

H2GS is in the process of raising nearly $3 billion from investors for construction of a large-scale, fossil-free steel plant in the Boden-Luleå region in northern Sweden. The project includes a giga-scale green hydrogen plant as an integrated part of the steel production facility. The company plans to break ground next year and begin production in 2024. By 2030, it intends to have annual production capacity for five million tons of high-quality steel.

The mill will produce hot rolled, P&O, cold rolled and galvanized sheet for industries such as automotive and appliance that are anxiously searching for ways to reduce their carbon footprint, Bula said. He is confident there is a market for the product, even at a premium. “There will be higher demand than supply for green steel in the future,” he said.

Key to the startup’s strategy is its commitment to a game-changing hydrogen-based steelmaking process. The hydrogen route means coal is not needed as a reduction agent to remove oxygen from iron ore, and the process emits water vapor instead of CO2. That makes it virtually free of the harmful carbon emissions from conventional steelmaking that are contributing to climate change.

“H2 wants to be a global brand that positions itself as the premier player in hydrogen green steel production,” said Bula.

Sweden is also the home of the HYBRIT hydrogen project funded by steelmaker SSAB, iron ore producer LKAB and power supplier Vattenfall. HYBRIT has proven the technology works, recently producing the first hydrogen-made sponge iron from its pilot plant near the site where H2GS plans to locate. H2GS hopes to build on HYBRIT’s success on a larger scale.

Why Sweden? The nation has an abundance of hydropower needed to produce hydrogen and a culture that is passionate about protecting the environment. For steel to be truly green, it must be produced using a fossil-free energy source such as wind or water, Bula noted.

Steel production accounts for about 25% of Europe’s industrial CO2 emissions, and H2GS hopes to contribute to the decarbonization of the European steel industry. “Europe is still largely serviced by the BOF industry, unlike the U.S., which has transformed much of it into EAF steelmaking. European policymakers and European steel buyers realize that something must be done,” Bula said.

Using hydrogen instead of coal can make a huge difference. Hydrogen-based steelmaking emits 0.1 tons of CO2 for every ton of steel produced, considerably less than the 0.4-0.7 tons produced by EAFs and a small fraction of the 1.8-2.0 tons emitted by blast furnace mills, Bula said.

In addition to helping secure investors, Bula is busy recruiting and developing a group of experts to get the project off the ground. “We’re building a world-class team with the best talent from around the globe, and we are very proud to have Mark on board,” said Henrik Henriksson, CEO of H2GS.

Bula’s career has taken him a long way from his Big River Steel days in Arkansas, to an AI software startup based in California to his new home in Stockholm. He is relishing his latest challenge. “I enjoy doing startups. To be able to look back and say we changed an industry. I would love to be part of that.”

By Tim Triplett, Tim@SteelMarketUpdate.com