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% 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, the company can reduce CO₂ emissions from the reduction process by up to 95%. By 2030 at the latest, annual production will be at 5 metric MMtpy of green steel.

The contract between SPM and H2 Green Steel is a 5-yr agreement valued at about €125 million in which SPM secures 25 percent of its future annual steel demand.

“Green steel is undeniably the future. It is the biggest change this industry has seen in a century and the speed of change is faster than many expect,” says Nick Liggins, Commercial Director, SPM. “As the cost of emissions start to impact traditionally made steel, green steel will fast become commercially the better option of the two, as governments drive companies towards CO₂ reductions. We choose to embark on this journey early and H2 Green Steel is the right match for us as they will offer the greenest steel at 195 kg CO₂ emitted per tonne of steel produced. We encourage others to reach out and join us on this decarbonization journey of the steel value chain and believe that companies who embrace this change early will have an advantage in their sector, particularly as demand for these products could outstrip supply in the next 5 years.”

SPM is an independent, family-run business and the announcement of this contract is made on the year of its 30th anniversary.

“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,” says Mark Bula, Commercial Head of Steel, H2 Green Steel. “For us, 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 at H2 Green Steel.”