The European Commission has approved a €265 million Swedish measure to support H2GS AB in setting up a large-scale green steel plant in Boden, Sweden. The project aims to contribute to the EU Hydrogen Strategy, the European Green Deal, and the Green Deal Industrial Plan targets. The steel plant will include a large electrolyzer, a direct reduction plant operating with renewable hydrogen, electric arc furnaces, and finishing facilities. The plant is expected to start operating in 2026, producing 2.4 million tonnes of green steel annually and reducing greenhouse gas emissions by up to 87%. The aid, in the form of a direct grant, is part of a total €6 billion investment, mainly funded by private investment and additional support from the EU Innovation Fund and European Investment Bank. The Commission's assessment found the measure compliant with EU State aid rules, necessary for promoting green steel production, and with safeguards to prevent competition distortions. Overall, the project is seen as bringing positive effects that outweigh any potential negative impacts, aligning with the EU's objectives for environmental and climate protection.