H2 Green Steel managed to raise €1.5 billion (around $1.6 billion). This investment will finance the world’s first industrial-scale integrated green steel mill, as well as Europe’s first large-scale electrolyser for the production of green hydrogen.

This is a private placement, co-led by new investor Hy24, alongside existing major investors Altor, GIC and Just Climate. The deal also includes new investors Andra AP – fonden and Temasek, as well as a group of existing investors who keep supporting H2 Green Steel with additional capital, including AMF, Cristina Stenbeck, Hitachi Energy, IMAS Foundation, Kinnevik, Schaeffler, Vargas and FAM, which is owned by Wallenberg.

The funds will be used to finance the construction and development of H2 Green Steel‘s large-scale green steel production plant in Boden, Sweden. Levelling works have been underway on the site since the summer of 2022. The capital injection will facilitate the start of operations, scheduled for the end of 2025.

The steel produced by this new plant will reduce CO2 emissions by up to 95% compared with steel produced using traditional blast furnace technology. This is made possible by replacing coal in the production process with green hydrogen. The latter is produced on site via Europe’s largest electrolyser, which uses electricity from renewable sources.

In addition, an unrivalled approach to circularity and recycling will make this steelworks the first of its kind.

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Article written by Laurent Meillaud and translated by Logan King