Sweden-based H2 Green Steel has announced it has raised a funding of €4.75 billion for the world’s first large-scale green steel plant to be constructed in northern Sweden, making total funding for the plant about €6.5 billion.
Accordingly, the company has inked a debt financing agreement of €4.2 billion, increased its equity by €300 million and has been granted €250 million from the EU Innovation Fund. Microsoft Climate Innovation Fund and Siemens Financial Servies are now among new investors. In September 2023, H2 Green Steel also raised €1.5 billion in equity.
As SteelOrbis reported previously, the company will produce five million mt of green steel at the Boden plant by 2030, using renewable hydrogen, which will reduce carbon emissions by up to 95 percent compared to coke-fired blast furnaces. The company has already signed agreements with several companies, from steel suppliers to automotive manufacturers, to supply green steel from the plant in question.
“The steel industry is a strategic sector, being at the heart of the EU economy. Our commitment to reach net zero by 2050 requires this sector to undergo transformative changes. It is important that the EIB, as the EU climate bank, is supporting H2 Green Steel in its pioneering development for a breakthrough clean technology to produce low carbon primary flat steel products. The project paves the way for the development of environmentally-friendly steel - crucial for the decarbonization efforts of the so-called “hard to abate sectors”, of which steel is an important one,” Thomas Östros, vice president of the European Investment Bank, stated.