H2 Green Steel has secured EUR4.75bn (USD5.17bn) in new funding for its groundbreaking green steel project in Boden, Sweden, making it the world’s first large-scale green steel facility, as reported by Reuters on January 22. The funding comprises EUR4.2bn in debt financing, nearly EUR300m in equity from investors, and a EUR250m grant from the EU Innovation Fund. This brings the total funding for the plant to EUR6.5bn, following last year’s equity fundraising of approximately 1.5bn euros. Notable new shareholders in this round include the Microsoft Climate Innovation Fund and Siemens Financial Service, alongside existing owners such as Altor, GIC, Just Climate, Andra AP Fonden, Hy24, and Temasek. H2 Green Steel aims to produce steel with up to 95% less CO2 emissions by utilizing hydrogen generated from renewable electricity instead of coal in the production process.

H2 Green Steel CEO Henrik Henriksson expressed gratitude for the extensive scrutiny by financiers and emphasized the significance of the massive commitment from lenders, investors, and the Innovation Fund, considering it as true recognition of the company’s quality. The Boden plant has already secured binding customer agreements for half of its initial yearly steel production volume of 2.5 million tonnes, spanning five to seven years. The successful fundraising positions H2 Green Steel to advance its environmentally friendly steel production and contribute to the global transition toward sustainable industrial practices.

Sources:

https://www.reuters.com/business/swedens-h2-green-steel-raises-52-bln-new-funding-2024-01-22/