H2 Green Steel has successfully secured approximately €1.5 billion in equity funding, marking the largest private placement in Europe for the year.
This significant achievement has been made possible through the unwavering support of an impressive investor group led by Altor, GIC, Hy24, and Just Climate. Joining the effort is new investor Hy24, along with existing investors Altor, GIC, and Just Climate.
Additionally, this transaction features new participants, Andra AP – fonden and Temasek, as well as a group of dedicated existing investors, including AMF, Cristina Stenbeck, Hitachi Energy, IMAS Foundation, Kinnevik, Schaeffler, Vargas, and Wallenberg Investments’ holding company, FAM.
Large-Scale Green Steel Plant
The primary purpose of this large private placement is to finance the construction and development of H2 Green Steel’s flagship large-scale green steel plant, strategically located in Boden, Sweden.
Groundwork for this ambitious project commenced in the summer of 2022, and with this latest infusion of capital, H2 Green Steel inches closer to its goal of commencing operations by the end of 2025.
What sets this green steel plant apart is its potential to deliver steel with up to 95 percent fewer CO2 emissions compared to traditional blast furnace technology.
This feat is achieved by replacing coal in the production process with hydrogen, generated on-site through Europe’s largest electrolyzer, powered exclusively by renewable energy sources.
Combining next-generation technology, digitalization, and a profound commitment to circularity and recycling, this steel plant is poised to be a pioneer in its category.
“The caliber of investors that are backing us is impressive. 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.
€1.5 billion 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” – Henrik Henriksson, CEO of H2 Green Steel
H2 Green Steel Funding
Since its launch in 2021, H2 Green Steel has raised over €1.8 billion in equity through three financing rounds.
These rounds include the series A equity round of €86 million in May 2021, the series B1 round of €260 million in October 2022, and significant debt financing of over €3.5 billion announced in 2022, with renewed commitment letters in July 2023.
Morgan Stanley & Co. International plc played a pivotal role as the sole financial advisor to H2 Green Steel during this private placement.
H2 Green Steel Focus
In the quest for a decarbonized future, green steel and green hydrogen emerge as a vital partnership.
Green hydrogen, a catalyst for industrial transformation, holds the potential to revolutionize various sectors, with steel standing out as a key player in achieving cost-effective and feasible decarbonization, reducing emissions to near-zero levels within the steel production process.
Green Steel
Steel is the backbone of our modern world, used in countless applications, from vehicles and buildings to household appliances.
H2 Green Steel is pioneering the production of green steel that reduces CO₂ emissions by up to 95 percent compared to traditional methods.
Green Hydrogen
To combat climate change, the focus must shift to industries responsible for a significant portion of global emissions.
H2 Green Steel is rising to this challenge by building one of the world’s largest electrolysis plants, powered by green hydrogen produced using fossil-free energy.
This integrated approach is set to transform steel production in Boden, Sweden, and serve as a model for decarbonization in heavy industries worldwide.
