Green Steel Investment, Top 10 Projects, Stegra’s €6.5 B Plant and Hyundai’s $5.8 B Mill (2024 to 2026)

The global steel industry is undergoing a pivotal transformation, marked by a surge in multi-billion-dollar investments aimed at decarbonization. Analysis of commercial activity from 2024 to 2026 reveals a clear acceleration away from pilot programs toward commercial-scale production, dominated by two technological pathways: hydrogen-based Direct Reduced Iron (H₂-DRI) and advanced Electric Arc Furnaces (EAF). Major financial commitments, such as Stegra’s over €6.5 billion in funding and Hyundai Steel’s $5.8 billion US mill, signal that the race to produce green steel is now a matter of execution. The prevailing theme for 2025 has been the translation of these capital-intensive announcements into tangible construction milestones and critical supply chain agreements, establishing new industrial hubs across Europe, North America, and Asia.

1. Stegra (formerly H 2 Green Steel) Boden Plant

Company/Project: Stegra
Location: Boden, Sweden
Investment: The project has secured over €6.5 billion in committed funding, including a €1.4 billion ($1.6 billion) financing round in April 2026. The total initial investment was estimated at €6 billion.
Production Capacity: 2.5 million tonnes annually starting in 2026, scaling to 5 million tonnes by 2030.
Technology: Green hydrogen-based Direct Reduced Iron (H₂-DRI) powered by a 700 MW electrolyzer. All 37 electrolysis modules from thyssenkrupp nucera were installed as of April 2026.
Timeline & Status: Under construction, with operations expected to commence in 2026.
Source: Stegra Secures $1.6 Billion to Complete Sweden’s …, Stegra installed all 37 electrolysis modules supplied by …

2. JSW Steel Green Capacity Expansion

Company/Project: JSW Steel
Location: India
Investment: ₹50, 000 crore (approximately $6 billion) announced in April 2025.
Production Capacity: Not specified, but part of a broader expansion strategy towards 100 million tonnes per annum.
Technology: Developing green hydrogen capabilities, including a 25-megawatt green hydrogen pilot project.
Timeline & Status: Investment announced in April 2025; completion timeline not provided.
Source: JSW Steel announces ₹50000 crore investment for green …

3. Hyundai Steel Integrated Mill

Company/Project: Hyundai Steel
Location: Ascension Parish, Louisiana, USA
Investment: $5.8 billion announced in March 2025, with an additional $350 million from partner Air Liquide.
Production Capacity: Described as a large-scale integrated mill; specific tonnage is not specified.
Technology: Electric Arc Furnace (EAF)-based integrated steel mill.
Timeline & Status: Announced in March 2025. Construction and operation timelines are pending.
Source: Hyundai Steel Announces $5.8 Billion Electric Arc Furnace …

4. U.S. Steel / Nippon Steel DRI Facility & Modernization

Company/Project: United States Steel Corporation (under acquisition by Nippon Steel)
Location: Big River Steel Works, Arkansas, USA
Investment: $1.9 billion for a new DRI facility announced in April 2026, part of a larger $11 billion investment plan through 2028.
Production Capacity: Not specified.
Technology: First-of-its-kind Direct Reduced Iron (DRI) plant in the United States.
Timeline & Status: DRI facility announced in April 2026. Broader investment plan extends through 2028.
Source: U. S. STEEL ANNOUNCES FIRST-OF-ITS-KIND IN THE …, Nippon Steel to invest $4 billion for new US Steel mill in …

5. Jindal Shadeed Green Steel Plant

Company/Project: Jindal Shadeed (Jindal Steel)
Location: Duqm, Oman
Investment: Referred to as a “mega-project”; specific value is not disclosed.
Production Capacity: 5 million tonnes of green steel per year.
Technology: Will utilize green hydrogen and renewable energy sources.
Timeline & Status: In the construction phase as of July 2025.
Source: The Gulf’s green steel: a look into the future

6. Salzgitter AG SALCOS Project

Company/Project: Salzgitter AG
Location: Salzgitter, Germany
Investment: Multi-billion euro program.
Production Capacity: The first stage will have a capacity of 1.9 million tonnes of crude steel annually.
Technology: Replacing blast furnaces with hydrogen-based direct reduction plants and electric arc furnaces.
Timeline & Status: First stage is scheduled to be operational by 2026. However, the second stage expansion decision was delayed in September 2025.
Source: Salzgitter AG: transitioning to green steel, Salzgitter delays later stages of green steel project due to …

7. Blastr Green Steel Plant

Company/Project: Blastr Green Steel
Location: Finland
Investment: Not specified.
Production Capacity: Planned annual capacity of 2.5 million tonnes of steel.
Technology: Hydrogen-based Direct Reduced Iron and Electric Arc Furnace (H₂-DRI-EAF) plant.
Timeline & Status: In the development and planning stage as of May 2026.
Source: The Finnish steel market: the price of the crisis

8. Meranti Green Steel DRI/HBI Project

Company/Project: Meranti Green Steel
Location: Al Duqm, Oman
Investment: Not specified.
Production Capacity: Targeting 2.5 million tonnes per year of DRI/HBI.
Technology: Will use green hydrogen as a feedstock.
Timeline & Status: Signed an Mo U for green hydrogen supply in December 2025.
Source: Green steel projects update: The momentum builds

9. JFE Steel EAF Conversion

Company/Project: JFE Steel
Location: Kurashiki district, Japan
Investment: Not specified.
Production Capacity: Not specified.
Technology: Installation of a large-scale Electric Arc Furnace (EAF) to replace a blast furnace.
Timeline & Status: Scheduled to begin commercial production in fiscal year 2028.
Source: Green Steel for GX

10. POSCO EAF Plant

Company/Project: POSCO
Location: Gwangyang, South Korea
Investment: Approximately KRW 600 billion ($397 million).
Production Capacity: 2.5 million tonnes of steel annually.
Technology: Electric Arc Furnace (EAF) technology.
Timeline & Status: Completed and operational as of June 2026.
Source: POSCO Completes Korea’s Largest EAF to Advance Green …

Table: Top 10 Green Steel Projects (2024-2026)

Global Green Steel Leadership: Stegra’s €6.5 B Plant Paces Europe

The geographic distribution of these top-tier projects reveals distinct regional strategies for decarbonization. Europe is clearly positioning itself as a leader in hydrogen-based steelmaking, while North America leverages mature EAF technology backed by massive new investments. Meanwhile, Asia and the Middle East are emerging as formidable players with large-scale greenfield projects designed to serve both domestic and global markets.

Europe’s Hydrogen-Powered Frontrunners

Northern Europe, with its abundant renewable energy potential, is the epicenter of the green hydrogen-to-steel movement. Stegra’s flagship €6.5 billion project in Boden, Sweden, is the most advanced example, with electrolyzers already installed for a 2026 start. It is followed by Salzgitter’s SALCOS project in Germany and Blastr’s planned facility in Finland. These projects share a common technological blueprint: using green hydrogen to produce DRI, which is then refined in an EAF. This strategy represents a complete break from the traditional coal-fired blast furnace route.

North America’s EAF and DRI Push

The United States is attracting significant investment focused on expanding and modernizing its steel capacity with lower-carbon technologies. Hyundai Steel’s massive $5.8 billion EAF-based mill in Louisiana and U.S. Steel’s $1.9 billion investment in a new DRI facility in Arkansas underscore this trend. These projects leverage the maturity of EAF technology, which primarily uses scrap steel but can be fed with DRI to produce higher grades of steel with a lower carbon footprint, capitalizing on favorable policy environments.

Asia and Middle East Expansion

The industrial ambitions of India, Oman, and South Korea are evident in their green steel initiatives. JSW Steel’s $6 billion investment in India and Jindal Shadeed’s 5-million-tonne plant in Oman represent a strategic push to build new, sustainable steel capacity from the ground up. Oman, in particular, is leveraging its renewable energy resources to become a hub for green hydrogen and its derivatives. In South Korea, POSCO’s completion of a 2.5-million-tonne EAF plant in June 2026 demonstrates a commitment from established Asian steelmakers to modernize their production fleets.

H₂-DRI Technology: 10 Projects Signal Commercial Readiness by 2026

The technological approaches of these leading projects bifurcate into two main streams: the transformative but challenging H₂-DRI pathway and the more incremental, proven EAF conversion route. While both aim to reduce carbon emissions, they represent different levels of technological maturity, capital intensity, and operational risk. The concurrent pursuit of both pathways indicates a pragmatic, dual-pronged industry strategy for decarbonization.

Hydrogen DRI Nears Commercial Scale

Hydrogen-based direct reduction is the industry’s long-term answer to eliminating coal. Projects like Stegra, Salzgitter, and Jindal Shadeed are at the vanguard, moving H₂-DRI from theory to commercial reality. Stegra’s progress is a critical benchmark; the successful installation of its 700 MW electrolysis unit in April 2026 is a tangible sign that the technology is ready for deployment. These projects require integrating large-scale renewable power, hydrogen production, and steelmaking, representing a complex but potentially revolutionary shift in industrial processes.

EAF as the Lower-Carbon Bridge

Electric Arc Furnaces represent a more immediate and less technologically risky path to decarbonization. The investments by Hyundai, POSCO, and JFE Steel are focused on either building new EAF mills or replacing aging blast furnaces with them. While EAFs have been used for decades, their “green” credentials depend on the electricity source and feedstock. The use of renewable energy to power the furnaces and the increasing use of low-carbon feedstocks like HBI and DRI are key to maximizing their environmental benefits, making them a crucial transitional technology.

2026 Green Steel Outlook: Stegra’s 2.5 M Tonne Launch and Market Headwinds

The critical factor for the green steel market in 2026 will be the operational and financial performance of its flagship projects, particularly Stegra’s Boden plant. Its ability to meet production timelines and cost projections will validate the H₂-DRI business case and significantly influence investment decisions for dozens of other projects in the global pipeline. Conversely, any stumbles could amplify existing market anxieties about costs and regulatory support.

• A key positive signal is Stegra hitting its development milestones, having secured over €6.5 billion in funding and installed its electrolysis modules ahead of a planned 2026 launch. This provides a strong proof-of-concept for the entire H₂-DRI value chain.
• The successful commissioning of POSCO’s large-scale EAF in June 2026 demonstrates that the more conventional EAF pathway is delivering new, lower-carbon capacity to the market quickly and efficiently.
• However, a significant headwind emerged in September 2025 when Salzgitter delayed investment decisions for its second expansion phase, citing economic and regulatory uncertainty. This highlights the fragility of these multi-billion-dollar, multi-decade projects in the face of volatile energy prices and shifting government policies.
• The massive investment announcements from JSW Steel ($6 billion) and Hyundai Steel ($5.8 billion) in 2025 are powerful indicators of market intent but currently lack firm operational timelines, making their immediate impact on 2026 supply and demand dynamics uncertain.

Green Steel Investment Surges, Yet Zero Projects Operational by Late 2025
The net-zero steel sector has attracted over $30.5B in announced investments, with $18B reaching Final Investment Decision (FID) as of November 2025. Despite this significant pipeline, zero net-zero steel projects are currently operational, indicating a critical gap between commitments and commercial production.

Commercialization Bottleneck Threatens 2024-2026 Green Steel Targets
The complete absence of operating green steel projects by late 2025 signals that ambitious commercialization timelines for 2024-2026 are facing substantial delays. This ‘valley of death” between FID and operation implies significant unaddressed challenges in scaling technology, securing off-take, and building supply chains.

(Source: Mission Possible Partnership — via Green Hydrogen Cost Economics 2026: The Real Path to Price Parity | Green Fuel Journal)

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