Purmo Group starts cooperation with H2 Green Steel for near zero-emission steel supply

06 November 2023

Purmo Group Plc | Press Release | 06 November, 2023 at 10:00 AM EET

Purmo Group, a leader in sustainable indoor climate comfort solutions, has entered into a binding agreement with H2 Green Steel, for the purchase of 140,000 tonnes of green steel during 2026-2033. The deliveries will support the Company in its further advancement in sustainability. Steel represents approximately 50% of all raw material purchases in the Group.

“This is an excellent collaboration with H2 Green Steel and another milestone in our sustainability journey towards carbon neutrality. With this agreement, we will be pioneers in our industry, securing the supply of green steel and starting the production of green steel products. Among these, our heat pump radiator range is an important product group in our core markets, where the energy renovation trend is strong. Our customers are demanding new and more energy-efficient heating and cooling systems and Purmo Group is well positioned to fulfil this growing demand”, comments John Peter Leesi, CEO of Purmo Group.

H2 Green Steel’s integrated, digitalised, and circular plant is located in Boden, northern Sweden and will start production at the end of 2025. The plant is integrated with the world’s largest electrolysis plants and is powered by green hydrogen produced with renewable electricity. It enables the reduction of CO₂ emissions by up to 95% compared to traditional steelmaking powered by coal.

“Purmo Group is a pioneer in another important customer segment for the steel industry. They are a great example of a company that is letting its business decisions truly be guided by its commitment to sustainability and achieving the Paris Agreement. At H2 Green Steel we applaud these first-mover companies in different sectors. They really make a difference”, says Henrik Henriksson, CEO of H2 Green Steel.

Purmo Group’s decision to source green steel from H2 Green Steel is part of the Group’s ambitions to align its productions towards a 1.5° Celsius future and carbon neutrality by 2025.

Clarification: Purmo Group aims to be net zero in carbon emissions by 2050 although other alignment targets will be achieved by 2025.

Further information:
Katariina Kataja, Head of Investor Relations, Purmo Group Plc
Tel. +358 40 527 1427
Justin Roux, Head of Global Communications, Purmo Group Plc
Tel. +44 771 742 2893

Principal media

About Purmo Group:
Purmo Group is at the centre of the global sustainability journey, offering full solutions and sustainable ways of heating and cooling homes to mitigate global warming. We provide complete heating and cooling solutions to residential and non-residential buildings, including underfloor heating and cooling systems, a broad range of radiators, heat pumps, flow control and hydronic distribution systems, as well as smart products. Our mission is to be the global leader in sustainable indoor climate comfort solutions. Our approximately 3,170 employees operate in 24 countries, manufacturing and distributing top-quality products and solutions to our customers in more than 100 countries. Purmo Group’s shares are listed on Nasdaq Helsinki with the ticker symbol PURMO. More information: www.purmogroup.com.

About H2 Green Steel:
H2 Green Steel (H2GS AB) was founded in 2020 with the ambition to accelerate the decarbonization of the steel industry, using green hydrogen. Steel, which is one of the world’s largest carbon dioxide emitters, is the company’s first business vertical. The founder and largest shareholder of H2 Green Steel is Vargas, which is also a co-founder and one of the larger shareholders in Swedish battery maker Northvolt. H2 Green Steel is headquartered in Stockholm, Sweden, with its first green steel plant under development in Boden, northern Sweden. www.h2greensteel.com.

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