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H2 Green Steel Secures €1.5 Billion Equity for World's First Green Steel Plant

9 Sept 2023

H2 Green Steel, a pioneer in sustainable steel production, has achieved a significant milestone by raising approximately €1.5 billion in equity funding. Led by a prominent investor group including Altor, GIC, Hy24, and Just Climate, this private placement represents the largest in Europe this year. The funding will support the establishment of the world's first large-scale green steel plant, marking a transformative step towards environmentally responsible steel production.

Key Highlights:

  • H2 Green Steel's successful equity round was co-led by Hy24, a new investor, alongside existing supporters Altor, GIC, and Just Climate.

  • Distinguished investors, including Andra AP-fonden and Temasek, have joined this initiative, along with ongoing support from existing backers such as AMF, Cristina Stenbeck, Hitachi Energy, and others.

  • The funds raised will drive the development and construction of H2 Green Steel's flagship green steel plant located in Boden, Sweden. The plant is on track to commence operations by the end of 2025.

  • This groundbreaking steel facility is poised to reduce CO2 emissions by up to 95% compared to traditional blast furnace methods. It achieves this by replacing coal with on-site hydrogen production through Europe's largest electrolyzer, powered by renewable electricity.

  • Advanced technologies, digitalization, circularity, and recycling practices will set a new standard for sustainable steel production, making it the first of its kind globally.

CEO Henrik Henriksson's Perspective: Henrik Henriksson, CEO of H2 Green Steel, expressed pride in the caliber of investors and their shared commitment to sustainability. He highlighted that the €1.5 billion private placement, the largest in Europe this year, underscores both the robust business case and the growing market demand for green steel.

CFO Otto Gernandt's Outlook: Otto Gernandt, CFO of H2 Green Steel, emphasized that this marks the beginning of large-scale decarbonization in basic materials production. He highlighted the necessity for substantial investments in the coming decades to enable industries to achieve their climate targets and contribute to transformative change.

H2 Green Steel's journey, initiated in 2021, has garnered substantial equity funding across multiple rounds. With a strong focus on sustainable steel production, the company is advancing towards reshaping the steel industry through innovation, responsible practices, and a commitment to environmental stewardship.

H2 Green Steel achieves a major financial milestone by securing €1.5 billion in equity funding, paving the way for the world's first large-scale green steel plant with substantially reduced CO2 emissions and a transformative approach to steel production.

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