Biden administration push to decarbonise draws in companies from Sweden, Denmark and Germany
In today’s Financial Times, one could read that the Swedish steel manufacturer SSAB had received $500M to set up a green steel factory in Mississippi. This is all exciting, especially as a Swede. The only concern is that SSAB previously had problems sourcing the hydrogen, hopefully, the IRA funding will solve the supply chain problems and generate much-needed jobs in MS.
Swedish steelmaker SSAB is among the European winners of a series of US government investments in a $6bn effort to decarbonize manufacturing, across high-polluting sectors such as steel, cement, chemicals, and fuel refining. The $500mn in funding earmarked for an SSAB commercial-scale steel plant using hydrogen in Mississippi is one of 33 deals by a new agency set up under the Department of Energy, as part of the Biden administration’s efforts to steer industrial strategy and stimulate the manufacturing sector. Of the five largest awards in the portfolio, each worth up to $500mn, three will go to operations with parent companies headquartered in Europe. The companies will match the US government investment, in a cost share. Since the 2022 passage of the Biden landmark climate legislation known as the Inflation Reduction Act (IRA), European lawmakers have voiced concerns about the incentives-driven pull of green investment to the US. The SSAB investment in the US comes as European steelmakers struggle to source the hydrogen needed for less carbon-intensive production. Final investment decisions for projects planned in Sweden and Germany have been delayed. In November, SSAB shelved plans for a hydrogen facility at Finland’s Raahe steelworks.
