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H2 Green Steel raises US$105M in Series A funding

H2 Green Steel raises US$105M in Series A funding
H2 Green Steel AB (H2GS), a newly formed company that plans to develop a large-scale greenfield steel mill for fossil-free steel production in the Boden-Luleå region in northern Sweden, has signed a Letter of Intent (LoI) with the municipality of Boden regarding the acquisition of a 500 ha site in the Norra Svartbyn Industrial Park (SIP). The plan is to develop a giga-scale green hydrogen plant as an integrated part of a 5 million tonne-per-annum steel production facility (photo courtesy Boden municipality).

The Swedish green steel venture H2 Green Steel AB (H2GS) has announced that it has raised US$105 million in Series A equity. H2GS will accelerate the transition into a more sustainable steel production to meet the rapidly growing demand for fossil-free steel.

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The global steel industry is one of the world’s largest emitters of carbon dioxide (CO2), representing approximately seven percent of global CO2 emissions.

Demand for fossil-free steel is growing rapidly with strong interest from global market leaders in sectors such as automotive, commercial vehicles, white goods, furniture, and construction.

Greenfield green steel plant

In February 2021, H2GS announced plans to become a large-scale steel producer and build a greenfield steel plant in northern Sweden. The plant will be located in Boden, offering unique conditions for cost-competitive fossil-free steel production.

The project includes a giga-scale green hydrogen plant as an integrated part of the steel production facility. Production is slated to begin in 2024 and by 2030, H2GS will have an annual production capacity of five million tonnes of high-quality steel.

The company will be a large-scale steel producer based on a fossil-free manufacturing process primarily targeting large European OEMs.

Successful Series A funding round

H2GS has been developed in close collaboration between the founding investor Vargas and several strategic and long-term investors, that are global leaders in sustainability and digitalisation.

H2GS has now successfully closed its Series A equity financing of US$105 million from a select group of investors.

According to the company, the strong investor interest and high-quality investor base “demonstrate a firm belief in H2GS and the market potential for green steel.”

New investors include a broad spectrum of companies and individuals ranging from strategic off-takers to technical partners, and long-term investors focusing on green impact, sustainability, and industry 4.0.

The Series A round investors include Altor Fund V, Ane & Robert Maersk Uggla, BILSTEIN GROUP, EIT InnoEnergy, Exor, FAM, IMAS Foundation, Kingspan, Marcegaglia, Mercedes-Benz AG, Scania, SMS Group, Stena Metall Finans, Cristina Stenbeck, Daniel Ek, and Vargas.

We’ve seen tremendous interest, both from the industry, future customers, and long-term investors, in our mission to bring down co2-emissions to zero in the steel industry. Investors all over Europe understand that the climate crisis is the biggest challenge of our time and that a transformation of the industry is necessary. Our closing of Series A is an important milestone that gives us continued momentum for the journey ahead, said Henrik Henriksson, CEO of H2 Green Steel.

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