Ashurst Advises John Laing on Investment in World’s First Green Hydrogen Steel Facility
Ashurst, a global law firm, has provided legal guidance to John Laing, a key infrastructure investment company, on its landmark investment in Stegra’s hydrogen steel manufacturing facility. The plant is set to become the world’s first large-scale green hydrogen steel production facility, located in Boden, Sweden. This pioneering project marks a significant step in reducing the carbon footprint of steel production by utilizing green hydrogen technology, aiming for a 95% reduction in emissions compared to traditional steel-making methods.
John Laing’s Strategic Investment in Hydrogen Steel
John Laing’s investment represents a private-to-private corporate partnership with Stegra, a Swedish steel manufacturer that is leading the charge in sustainable steel production. The legal advice provided by Ashurst was integral in structuring the complex financial and operational aspects of the partnership. Stegra’s facility will revolutionize steel manufacturing by producing steel with a dramatically lower carbon footprint, addressing the urgent global demand for low-carbon steel solutions.
The team from Ashurst advising on the transaction was led by partner Katie Williams, supported by senior associates Anthony Gray, Harriet Gray, and Ian Hedberg, along with associates Amelia Gordon, Ciaran Rutherfurd, and Divya Deivanayagam. A broader team focused on the corporate elements of the deal, including partner Jason Radford, senior associate Scott Vanderwolf, and associate Elnaz Cadogan.
Water Treatment Facility: A Key Component
John Laing’s role extended to overseeing the structuring of the Water Treatment Services Agreement, which is critical to the facility’s sustainable operations. The water treatment facility, provided and managed by Aquatech, will play a vital role in supplying demineralized water to the electrolysers that produce green hydrogen. It will also process wastewater from Stegra’s steel mill, recycling 99.9% of the water, making the facility an environmentally efficient operation.
The partnership showcases the potential of hydrogen-based technology in transforming industries that are traditionally high emitters of carbon. This facility’s model aligns with global efforts to achieve net-zero emissions, a goal that is becoming increasingly urgent as countries across the world commit to ambitious climate targets.
John Laing’s Commitment to Sustainable Infrastructure
Andrew Truscott, CEO of John Laing, highlighted the significance of this investment, stating, “We recognize significant potential in this sector. This initiative presents a compelling opportunity to invest in the expanding hydrogen steel market, facilitating Stegra’s swift growth and scaling of production to address the global demand for low-carbon steel.”
He further emphasized the importance of such innovative technologies in achieving global climate goals: “The necessity for such technology has never been more pressing in achieving net-zero targets across nations. We are eager to be involved in this facility and remain committed to identifying and investing in essential infrastructure assets that support the global energy transition.”
A Major Step Toward Decarbonizing Steel Production
Stegra’s hydrogen steel manufacturing facility represents a significant milestone in the steel industry’s shift toward sustainable production. By using green hydrogen, Stegra aims to set a new standard for the future of steel production, significantly reducing greenhouse gas emissions while meeting growing demand for low-carbon steel.
This project exemplifies the growing trend of investing in sustainable infrastructure and green technologies. As the global transition to renewable energy accelerates, initiatives like this could lead to transformative changes in industries traditionally reliant on fossil fuels.
Related: The Top Paying Law Firms of 2024