Massive Investment in Europe’s Top Green Steel Project

    H2 Green Steel has successfully raised approximately €1.5 billion in equity funding, marking a pivotal milestone in their mission to construct the world’s first large-scale green steel facility, as well as Europe’s inaugural giga-scale electrolyser. 

    A green steel revolution

    Located in Boden, Sweden, this groundbreaking project aims to drastically cut carbon emissions in steel production, potentially achieving a remarkable 95% reduction compared to traditional blast furnace methods. One remarkable aspect of this project is that it uses hydrogen instead of coal for power. The secret behind this change is the giga scale electrolyser, which uses renewable electricity to create hydrogen. The project began in the summer of 2022 with a groundbreaking event, and the new funding will help it move past the initial construction stage.

    Europe’s largest private placement

    This financing round stands out as one of Europe’s most significant investments this year. It was co-led by a new investor named Hy24 and supported by longtime backers like Altor, GIC, and Just Climate. There are also new investors, Andra AP-fonden and Temasek, joining the mix, along with previous investors like AMF, Cristina Stenbeck, Hitachi Energy, IMAS Foundation, Kinnevik, Schaeffler, Vargas, and the Wallenberg Investments company FAM.

    H2 Green Steel has primarily relied on equity funding to date, successfully raising a total of €1.8 billion across three funding rounds. Notable milestones include a Series A round in May 2021 that raised €86 million and a Series B1 round in October 2022, which generated €260 million. On the debt funding front, the company has secured access to over €3.5 billion and has confirmed the renewal of commitment letters as of July 2023.

    Leaders’ vision

    Henrik Henriksson, the CEO of H2 Green Steel, is excited about the high-quality investors supporting their sustainability mission. He points out that the €1.5 billion raised is Europe’s biggest private placement this year, showing strong market demand for green steel and interest in their business model. Otto Gernandt, the CFO, agrees about how this funding is a big move toward making material production more eco-friendly. It acknowledges the need for investments to help customers make greener products and hopes to get more investors involved in cleaning up industries that are typically hard to make more environmentally friendly.

    David Zingmark
    I'm a passionate individual dedicated to shining a spotlight on incredible companies. My goal is is to uncover stories by telling the most complex operations into simplified words, empowering you as a reader to gain better insights and make informed investment and/or business choices.

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