Sweden's H2 Green Steel raises $5.2 bln in new funding
(Reuters, 22 Jan 2024) H2 Green Steel has raised 4.75 billion euros ($5.17 billion) in new funding for its planned flagship plant in the northern Swedish town of Boden, which will be the world's first large-scale green steel project.
The company, founded in 2020, has signed debt financing of 4.2 billion euros, added equity of close to 300 million euros from investors and been awarded a 250 million euro grant from the EU Innovation Fund, it said in a statement on Monday. Total funding for the plant amounts to 6.5 billion euros, said the company, which last year raised equity funding of about 1.5 billion euros.
"No one has scrutinised our project more thoroughly than those who back our financing," H2 Green Steel CEO Henrik Henriksson said in the statement. "This massive commitment from our lenders, investors and the Innovation Fund is true recognition of the quality of our company," he added.
New shareholders include the Microsoft Climate Innovation Fund and Siemens Financial Service. H2 Green Steel's existing owners include Altor, GIC, Just Climate, Andra AP Fonden, Hy24 and Temasek. The Boden plant will use hydrogen produced from renewable electricity - rather than coal - to deliver steel in a process emitting as much as 95% less CO2 than steel produced with traditional blast furnace technology, the company has said.