In a significant development, H2 Green Steel has successfully secured approximately €1.5 billion in equity funding, marking the largest private placement in Europe this year. This investment comes from a consortium of leading investors, with Altor, GIC, Hy24, and Just Climate taking the lead.
This substantial funding round is co-led by the newcomer, Hy24, in collaboration with existing investors such as Altor, GIC, and Just Climate. Notably, it also welcomes new investors, including Andra AP – fonden and Temasek, alongside continued support from a group of existing investors, including AMF, Cristina Stenbeck, Hitachi Energy, IMAS Foundation, Kinnevik, Schaeffler, Vargas, and Wallenberg Investments holding company FAM.
The primary objective of this funding is to finance the construction and advancement of H2 Green Steel’s flagship large-scale green steel plant, located in Boden, Sweden. Groundwork at the Boden site commenced in the summer of 2022, and this substantial capital injection propels H2 Green Steel closer to its operational launch by the end of 2025.
The pioneering steel plant is set to revolutionise the industry by producing steel with a remarkable reduction of up to 95 per cent in CO2 emissions compared to conventional blast furnace technology. This remarkable achievement is made possible by replacing coal in the production process with on-site hydrogen production using Europe’s largest electrolyzer, powered by renewable energy sources. Advanced technology, digitalization, and a strong commitment to circularity and recycling will position this steel plant as a trailblazer in its category.