Sweden’s H2 Green Steel has invested 189 million dollars
H2 Green Steel has received 190 million euros ($189.4 million) in a Series B financing round from a select group of investors to enable the construction of a fossil fuel-free steel mill in northern Sweden.
The fundraising was led by new investors GIC, AMF and Schaefflerwhich was joined by existing investor Altor Fund V.
Other participants in the equity financing round are Swedbank Robur Alternative Equity and existing shareholders Vargas, KingspanFAM, Marcegaglia, IMAS Foundation, Cristina Stenbeck and Daniel Ek.
H2 Green Steel plans to produce steel through a green hydrogen-powered plant in Boden in northern Sweden.
H2 Green Steel CEO Henrik Henriksson said: “This funding milestone is a real vote of confidence for H2 Green Steel. Despite the uncertainty in global markets, a venture like ours, with both a strong business case and a strong sustainable purpose, is clearly attractive to investors.
“This funding round has enabled us to combine leading industrial companies and global financial institutions, with investors with a strong Swedish participation, and create the investor base that will set us up for success.”
The Swedish green impact company aims to have an annual green steel production capacity of five million tonnes by the end of this decade.
It has already committed about 60% of its initial volumes from the proposed steel plant to customers in sectors such as steel service centers, pipes and tubes, passenger vehicles and heavy commercial vehicles.
Scheduled to start production as early as 2025, the fully integrated, digitalized and circular plant is expected to reduce 95% of CO₂ emissions compared to traditional steelmaking.
Swedbank Robur’s alternative investment manager Henrik Lundh said: “By investing in H2 Green Steel, we are supporting the efficient production of green hydrogen and green steel, thereby supporting cost-competitive industrial development with carbon dioxide emissions.
“The company’s ambition to take a driving role in the European green hydrogen transformation to reduce carbon emissions in hard-to-reduce industries is well aligned with our mission to support disruptive, transformative companies with strong leadership and customer propositions, and long-term sustainable competitive advantage. “