H2 Green Steel has raised €1.5 billion in equity from an investor group to finance its first large-scale green steel plant.
The investor group co-led by Hy24 and existing partners Altor, GIC, and Just Climate. The funding round is assumed to ease creation of giga-scale electrolyzer.
The transaction includes new investors Andra AP – fonden and Temasek. Additional equity funding, including AMF, Cristina Stenbeck, Hitachi Energy, IMAS Foundation, Kinnevik, Schaeffler, Vargas and Wallenberg Investments holding company FAM.
The company plans to finance the construction and development of “H2 Green Steel’s flagship large-scale green steel plant” in Boden, Sweden.
The H2 Green Steel’s tech –
The company claims that the plant will deliver steel with 95% less CO2 emission as it utilizes hydrogen, not coal. The product will be produced on-site with an electrolyzer that employs electricity from renewable source
The company also says, the plant’s modern tech, digitalization, and the unrivaled method make it a distinguished product in the industry.
Henrik Henriksson, CEO of H2 Green Steel, says, “The caliber of investors that are backing us is impressive. Some of the most professional institutions, investors and industrial companies globally are part of this round and we are proud that they all share our commitment to sustainability as their true north. €1.5 billion is the largest private placement in Europe this year and the appetite to invest in us proves both our solid business case and the market demand for green steel.”
Otto Gernandt, CFO of H2 Green Steel, says, “This marks the start of industrial scale decarbonization of basic materials production. The sector will require substantial investments over the coming decades to enable our customers to produce green end products and, thereby meet their climate targets.”
“We hope this financing will contribute towards accelerating the much needed, broad participation of capital markets in the transformation of hard-to-abate industries.”
