H2 Green Steel raises €1.5bn to fund green steel plant and a related electrolyser

H2 Green Steel has raised €1.5bn ($1.6bn) in equity this year (2023) which will finance a large-scale green steel plant and a giga-scale hydrogen electrolyser.

The €1.5bn was raised from an investor group led by Hy24, Altor, GIC, and Just Climate, also including Andra AP – fonden and Temasek and a group of existing investors which will continue to support H2 Green Steel with additional equity funding.

The proceeds will fund the construction and development of H2 Green Steel’s large-scale green steel plant in Boden, Sweden, which will deliver up to 95% less carbon dioxide (CO2) emissions compared to traditional steel production, with operations expected to begin at the end of 2025.

The low-carbon steel production will be made possible by replacing coal in the production process with hydrogen, which will be produced by Europe’s ‘largest’ electrolyser using electricity from renewable sources.

Henrik Henriksson, CEO of H2 Green Steel, said, “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.

“€1.5bn 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.”

Since the launch of H2 Green Steel in 2021, it has raised more than €1.8bn of equity in three financing rounds. Otto Gernandt, CFO of H2 Green Steel, said, “We hope this financing will contribute towards accelerating the much needed, broad participation of capital markets in the transformation of hard-to-abate industries.”

Gernandt added, “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.”

In June (2023), H2 Green Steel announced it had received a full environmental permit for its facility in Boden. The permit allowed the company to begin operations at the plant when ready.

Read more:H2 Green Steel’s Boden plant receives full environmental permit

The general consensus from the project investors is strong support towards the decarbonisation of the hard-to-abate, steel production industry.


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