For transparency and my own agenda, I strongly dislike our previous government, the Social Democrats with the support of the Green Party and the tacit acceptance of the Left Party, who ruled Sweden for 8 years. At the last election, I voted for the current government.
The project, which was originally budgeted at $4.415 billion and planned to start production in 2024, has now doubled its cost estimate to $8.83 billion and postponed the start of production until 2027 at the earliest. Exactly how many additional years are required before the existing iron ore pellets have been replaced with the carbon dioxide-free iron sponge is unclear. In the meantime, H2GS will produce steel in the same way as already established and competing steel mills.
There are around 80 different startups around the world with the ambition to produce fossil-free steel. The chance that H2GS will ever be able to cover its own costs and become profitable is minimal, mainly because another technological solution to making fossil-free steel is likely to prove more efficient. Should that be the result, not only the Swedish taxpayers are losers but also the environment, since infrastructure investments have been made in the local community in Boden based on the project being a success.
The uncertainty is so great that in the vernacular, Green Steel has now become Green Steal.
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