Top 10 Green Hydrogen Projects: Stegra’s €6 B with thyssenkrupp nucera and China Baowu’s 1 M Tonne Plant (2024-2026)

The global green steel market has reached a critical inflection point, marked by a clear bifurcation between well-funded flagship projects and a growing number of ambitious plans that have stalled. Analysis from 2024 through early 2026 reveals that while the technology for hydrogen-based steelmaking is ready, the prohibitive cost and uncertain availability of green hydrogen are creating a “flight to quality.” Only projects with significant government backing, secure financing, and access to affordable renewable energy are advancing. For example, Stegra successfully raised over €6 billion to move its Swedish plant forward, while industrial giants like Thyssenkrupp were forced to pause major initiatives in March 2025 due to unfavorable economics.

The dominant theme for 2025 has been the collision of decarbonization goals with economic reality. The commercial viability of these projects depends on a “green premium, ” which market data in 2025 showed to be a volatile 20% to 30%. However, with some low-carbon steel price indices falling by as much as 50% in early 2026, this premium is proving unreliable. This has forced a reckoning across the industry, separating the projects with integrated energy and funding strategies from those reliant on a market for green hydrogen and steel premiums that has not yet fully materialized.

1. Stegra Boden Steel Plant, Boden, Sweden

Company: Stegra (formerly H 2 Green Steel)
Installation Capacity: 2.5 million tonnes (initial phase)
Applications: 100% green hydrogen-based DRI-EAF, powered by over 700 MW of electrolyzers from thyssenkrupp nucera.
Source: Momentum stalls for green steel – IOM 3

2. SALCOS (Salzgitter Low CO₂ Steelmaking), Salzgitter, Germany

Company: Salzgitter AG
Installation Capacity: 2.1 million tonnes (DRI)
Applications: Energiron hydrogen-ready DRI technology paired with EAFs.
Source: [PDF] The Future of Low-Carbon Steel: Technological Trends and … – RINA

3. South Korea Hydrogen DRI Plant, Pohang, South Korea

Company: POSCO / Government Initiative
Installation Capacity: 0.3 million tonnes (DRI)
Applications: National demonstration project to integrate green hydrogen production with H₂-DRI steelmaking.
Source: [PDF] Driving Hydrogen-Based Steelmaking in South Korea:

4. Xinjiang DRI-EAF Plant, Xinjiang, China

Company: China Baowu Steel Group
Installation Capacity: 1.0 million tonnes
Applications: Hydrogen-based DRI-EAF production line.
Source: China’s new hydrogen push could be a step towards cleaner steel

5. Arcelor Mittal DRI Plant, Gijón, Spain

Company: Arcelor Mittal
Installation Capacity: 2.3 million tonnes (DRI)
Applications: Large-scale DRI plant designed for hydrogen blending.
Source: Green Steel Revolution: Complete Guide to Hydrogen-Based DRI …

6. Jindal DRI Plant Expansion, Oman

Company: Jindal Steel
Installation Capacity: Not specified
Applications: Second hydrogen-ready DRI plant ordered for its Oman operations.
Source: [PDF] IEEFA report_Oman at the frontline of the green steel …

7. Blastr Green Steel Plant, Inkoo, Finland

Company: Blastr Green Steel
Installation Capacity: Not specified
Applications: Integrated green steel plant utilizing hydrogen-based DRI, with Midrex and Primetals as technology suppliers.
Source: Direct Reduced Iron (DRI) Market Share 2025 – OMR Global

8. Thyssenkrupp “tk H₂Steel”, Duisburg, Germany

Company: Thyssenkrupp AG
Installation Capacity: 2.5 million tonnes
Applications: Hydrogen-based DRI plant intended to replace a conventional blast furnace.
Source: Major pause in EU steel industry decarbonization projects

9. Arcelor Mittal EAF Conversions, Bremen & Eisenhüttenstadt, Germany

Company: Arcelor Mittal
Installation Capacity: Not applicable
Applications: Conversion of existing blast furnace sites to DRI and EAF technology.
Source: Arcelor Mittal postpones EAF conversions in Germany

10. General European Projects

Company: Multiple
Installation Capacity: Not applicable
Applications: Multiple projects across Europe delayed due to economic, technical, and energy cost uncertainties.
Source: Green steel projects in Europe are being postponed in 2025 due to …

Table: Top Green Steel & Hydrogen DRI Projects (Updated May 2026)

Green Steel Adoption, a 93% Premium Hinders Wider Rollout

The primary barrier to widespread adoption is cost. Analysis from 2025 shows that producing hot-rolled coil steel via the Green Hydrogen DRI-EAF route costs approximately 910 €/tonne, a staggering 93% premium over the 472 €/tonne for traditional blast furnace production. This cost differential, driven primarily by the price of green hydrogen and electricity, means adoption is limited to sectors that can absorb the premium, such as automotive and high-end construction. The projects show a singular focus on the DRI-EAF pathway, indicating consensus on the technical solution. However, the stalling of major German projects by industry leaders Arcelor Mittal and Thyssenkrupp demonstrates that even for the largest players, the business case remains challenging without significant subsidies or a dramatic fall in hydrogen prices.

Green Steel Production Costs Hinge on Electricity

This section discusses the high cost premium for green steel, driven by energy prices. The chart directly analyzes the Levelized Cost of Steel (LCOS), showing how it increases from ~$850 to over $1300/tonne based on grid reliance, validating the article’s point.

(Source: ScienceDirect.com)

Europe’s Bifurcation, Stegra Advances as German Projects Stall

A clear geographical divergence is emerging in the race to produce green steel. Projects in Nordic countries, like Stegra in Sweden and Blastr Green Steel in Finland, are advancing, leveraging abundant and low-cost hydropower and wind resources. Similarly, plans are progressing in Oman, where Jindal Steel is expanding to capitalize on excellent solar potential for green hydrogen production. This contrasts sharply with Germany, where flagship projects by Thyssenkrupp and Arcelor Mittal were stalled in 2025 due to high energy costs and a lack of available, affordable green hydrogen. Meanwhile, China Baowu brought a 1.0 million tonne plant online in late 2025, showcasing China’s ability to execute large-scale industrial decarbonization projects rapidly through state-backed initiatives, a capacity that European competitors are struggling to match.

European Green Steel Projects Mapped by Status

The section describes a “bifurcation” in Europe, with Nordic projects advancing while German ones stall. The chart perfectly illustrates this by mapping European projects and detailing their status as moving forward, pending, or cancelled.

(Source: EUROMETAL)

2.5 Million Tonnes, Stegra’s DRI-EAF Plant Nears 2026 Operation

The current state of projects reveals that the core technology—Direct Reduced Iron (DRI) paired with an Electric Arc Furnace (EAF)—is mature and ready for deployment. The primary bottleneck is not the steelmaking technology itself, but the upstream challenge of producing green hydrogen at the scale and cost required. Stegra’s 2.5 million tonne plant, set for commissioning in 2026, is the leading example of a project attempting to solve this by integrating a massive 700 MW electrolyzer park directly into its operations. Its progress validates the integrated model. Conversely, the “major pause” affecting other European projects confirms that decoupling hydrogen supply from steel production remains economically unviable, making the entire transition a supply chain and energy infrastructure challenge rather than a purely technical one.

Green Steel Process Can Cut Emissions 95%

The section identifies the DRI-EAF method as the mature core technology for green steel. This infographic directly compares the traditional and green steel processes, visually explaining the DRI-EAF route and its benefit of up to 95% emissions reduction.

(Source: ClimateSort)

Thyssenkrupp’s Postponed Tender, A 2025 Green Hydrogen Test

The industry’s trajectory for the remainder of the decade will be defined by the cost of green hydrogen and the operational success of the first wave of integrated plants. The most critical strategic development to watch is any movement on the green hydrogen supply tenders that were postponed in 2025, as their revival would signal a significant shift in market economics.

• Gaining Traction: The success of Stegra in securing over €6 billion in financing and proceeding with construction for its 2026 launch highlights a viable path for projects located in regions with cheap, abundant renewable energy and strong public-private backing.
• Losing Steam: The indefinite postponement of Thyssenkrupp’s green hydrogen tender in March 2025, followed by Arcelor Mittal’s decision to halt its German conversions, represents a major loss of momentum in continental Europe, underscoring the severe economic headwinds.
• Gaining Traction: China’s rapid deployment, evidenced by China Baowu’s operational 1.0 million tonne plant, shows that a state-led industrial policy can accelerate the transition and potentially create a new competitive landscape.
• Watch This: The green premium for steel remains the most critical, and volatile, variable. A 50% drop in one low-carbon steel index in early 2026 raises serious questions about whether market demand alone can sustain the high production costs without long-term, predictable policy support like carbon contracts for difference or stringent carbon pricing.

German Steel’s Pivot to Green Hydrogen

This section focuses on Thyssenkrupp’s postponed hydrogen tender as a critical test. The chart directly supports this by mapping Germany’s planned low-carbon steel plants, including the Duisburg site, and highlighting their significant hydrogen demand.

(Source: S&P Global)

The questions your competitors are already asking

This report covers one angle of the commercial viability of green steel and hydrogen DRI projects. The questions that matter most depend on your work.

• Which companies are gaining or losing ground in the green steel market, and which projects are stalled?
• What is actually happening with Thyssenkrupp’s green steel initiatives since the March 2025 pause?
• Stegra investments and funding. Is the 2.5 million tonne Boden plant on track for its targets?
• What is the outlook for the green steel premium after the price volatility of 2025 and 2026?

This report does not answer these. Enki Brief Pro does.

Your question, your angle, your framework. SWOT, PESTL, scenario modelling. The same niche depth, built around the decision your work actually depends on.

Run your first brief in Enki Brief Pro