Purmo Group enters term-sheet agreement with H2 Green Steel

Purmo Group has entered a non-binding agreement with H2 Green Steel, agreeing terms on supply of 140,000 tonnes of steel between 2024 and 2031. Purmo Group is a leading supplier of indoor-climate comfort solutions and currently buys steel chiefly for the production of steel-panel radiators for global markets. Venturing in to green steel is a significant step. The Group has stated sustainability commitments that cover “products, production, people and communities” and, according to H2 Green Steel, conventional steel production generates up to 25% of Europe’s industrial CO₂ emissions.

John Peter Leesi, CEO of Purmo Group comments: “The future market for steel-panel radiators is strong and our customers share our vision that perfect indoor climates should not cost the planet’s climate. Significantly reducing the carbon-footprint of system components is very welcome news for our whole supply chain but, more importantly, for the planet’s climate.” 

H2 Green Steel is a pioneer in decarbonising the future production of steel. Its first plant will be built in Boden, Northern Sweden, producing green hydrogen from fossil-free electricity that is then used in its green steel-making process. It is a start-up company, securing funding from forward-facing companies who share its vision. First production is planned for 2024. 

John Peter continues: “17% of all European energy is used to make residential buildings hot or cold. The demand for solutions that reduce that figure is large and growing. Our expertise is in those solutions but we want to extend our sustainability efforts to all parts of our business - that’s why we’re so interested in H2 Green Steel’s offering. The ability to decarbonise the production of one of the World’s most important metals is a huge step forwards and we’re proud to be a part of it.”

Henrik Henriksson, CEO of H2 Green Steel adds: “We’re very happy to have Purmo Group on board, not just for their commitment to green steel, but our shared dedication to tacking some of the biggest causes of CO2 emissions. Steel production accounts for 25% of Europe’s industrial CO₂ emissions so decarbonisation is a must for the industry. With H2 Green Steel, we’re committed to eliminating virtually almost all CO₂ emissions from the steel-making process. Our Boden plant will be the first large-scale production site for green steel. Together, we will achieve virtually fossil-free, high-quality steel in the near term.”

- end -

Further information

Justin Roux, Head of Global Communications tel: +44 771 742 28 93
Josefina Tallqvist, Purmo Group Investor Relations, tel. +358 40 745 5276


Purmo Group is a leader in sustainable indoor climate comfort solutions in Europe. We provide complete heating and cooling solutions to residential and non-residential buildings, including radiators, towel warmers, underfloor heating, convectors, valves and controls. Our mission is to be the global leader in sustainable indoor climate comfort solutions. Our approximately 3,500 employees operate through 46 locations in 21 countries, manufacturing and distributing top quality products and solutions to customers in more than 100 countries globally. Purmo Group Plc is listed on Nasdaq Helsinki. www.purmogroup.com

H2 Green Steel (H2GS AB) was founded in 2020, with the ambition to accelerate the decarbonization of industry using Green Hydrogen. Steel is the company’s first industry vertical due to its technological and commercial maturity when it comes to CO2 reduction possibilities. H2 Green Steel accelerates decarbonization of the European steel industry, one of the largest carbon dioxide emitters. The founder and largest shareholder is Vargas, which is also co-founder and one of the larger shareholders in Northvolt. H2 Green Steel is headquartered in Stockholm, Sweden, with its first plant under development in Boden, northern Sweden. www.h2greensteel.com