H2 Green Steel, the Swedish developer of green hydrogen powered steel production, has secured €190m in its first close of the series B equity financing.
The equity round was co-led by new investors AMF, GIC and Schaeffler, alongside existing investor Altor Fund V.
Also participating in the equity raise is new investor Swedbank Robur Alternative Equity and existing shareholders Vargas, Kingspan, FAM, Marcegaglia, IMAS Foundation, Cristina Stenbeck and Daniel Ek continue to support the company with additional equity funding.
H2 Green Steel aims to transform industries that generate significant carbon emissions, starting with steel through a green hydrogen powered steel plant in Boden in Northern Sweden.
“This financing milestone is a real statement of confidence in H2 Green Steel. Despite the uncertainty in global markets, a venture like ours, with both a strong business case and a strong sustainable purpose, is clearly attractive to investors.
“This financing round has allowed us to combine leading industrial companies and global financial institutions, with investors with a strong Swedish participation, creating the investor-base that will set us up for success,” said Henrik Henriksson, CEO of H2 Green Steel.
After its launch in February 2021 and the close of its series A equity round the following May, H2 Green Steel has proceeded in record pace receiving a permissibility permit for its operations in Boden, securing a 14 terawatt hour agreement for renewable electricity and initiating ground works and construction.
Now it is reaching another milestone in financing adding to the solid group of investors from the first investment round.
H2 Green Steel has pre-sold about 60% of its initial volumes of decarbonised steel.
Customers represent a broad range of sectors including steel service centres, pipe and tube, passenger vehicles and heavy commercial vehicles, white goods and construction products.