Blastr Green Steel (Blastr) has signed a Memorandum of Understanding with INTERFER Edelstahl Group, a leading European steel trading company, for the annual supply of 150,000 tonnes of ultra-low CO₂ steel products.
It marks the second offtake agreement announced in just over a month, covering a combined 10% of the planned capacity at Blastr’s green steel plant under development at Inkoo, Finland.
Mark Bula, CEO of Blastr, said he was pleased to expand its partnership with INTERFER, one of Blastr’s shareholders, to include delivery of low-carbon steel products.
“The agreement demonstrates continued customer demand for decarbonised steel products at a market premium reflecting the need for new investments in Europe’s steel industry. It also underpins our joint commitment to enabling material climate change impact by bringing green steel to the market at scale,” he said.
Blastr is creating a low-carbon steel value chain with lower C0₂ emissions compared to conventional steelmaking by using hydrogen instead of coal in the production process and feedstock made with clean energy.
This includes the Inkoo steel plant, set to produce 2.5 million tonnes of ultra-low CO₂ steel annually and the development of a green DR pellet plant in the UK to meet growing European demand for sustainable and environmentally friendly industrial solutions.
The agreement covers the supply of ultra-low CO2 steel products from the Inkoo plant over an unspecified long-term period.
Blastr expects to supply HRC grade steel with CO2 total embodied emissions of less than 500 kg CO2 equivalent per tonne, including Scope 1, 2 and 3. This compares to emissions of ~2,200 kg CO2 equivalent per tonne in conventional steelmaking.
Deliveries are planned to start by the end of 2029. Both parties intend to start discussions on a binding agreement in the beginning of 2025.
Gerold Lorenz, CEO of INTERFER Edelstahl Group, said entering into this MoU and thus resulting in the offtake of ultra-low CO2 HRC grade steel is the next and consequential step for INTERFER Edelstahl Group, following the investment taken by its affiliate INTERFER Austria.
He said, “The aim to support the green transition and build a sustainable future is the key driver for us to invest in and promote green steel. Blastr’s ultralow CO2 HRC grade steel will be an excellent addition to our product portfolio, and we are looking forward to offering this high grade material to our customers.”
The green steel sector has been a hive of activity in recent weeks. Read all the latest developments in the ‘Hot Topic’ section of gasworld global’s December issue.
