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China is accelerating its hydrogen-based steelmaking initiatives, with Baowu's DRI plant operational and a new green hydrogen project announced. In contrast, Sweden's Stegra, which is constructing a green steel plant, is experiencing a funding shortfall, needing over $1 billion to continue.

This highlights a slowdown in Europe's green steel transition, with concerns that Europe may fall behind China, which has already surpassed its 2025 green hydrogen target. Baosteel's DRI facility employs Western technology but primarily relies on coke oven gas, raising questions about its transition to fully green hydrogen.

Stegra's project is 60% complete and has secured offtake agreements, yet the overall shift from coal to DRI in Europe has decelerated. If successful, Stegra could represent a significant step in green steel production, but its struggles could further hinder Europe's progress in the sector.