Sweden's H2 Green Steel raises €190m in latest financing round

Sweden's H2 Green Steel has raised €190 million in its latest round of financing, as its push to replace fossil fuels with green hydrogen in steel production gathers pace.

The company is constructing its first steel mill in the northern Swedish town of Boden, with an aim to produce 5 million tonnes of green steel per year by 2030.

Read more: Swiss Steel pushes to be green steel market leader in Europe

The financing round was co-led by three new investors; Singapore's sovereign wealth fund GIC, Swedish pension fund AMF, and German automotive firm Schaeffler, as well as existing investor Altor Equity.

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.

"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.

Read more: HYBRIT green steel given €143m EU funding

After its launch in February 2021 and the close of its series A equity round in May of the same year, the company received a permissibility permit for its operations in Boden in record time, securing a 14 TWh agreement for renewable electricity and initiating groundworks and construction. 

H2 Green Steel has already pre-sold about 60% of its initial volumes, which is a testament to the high demand for decarbonised steel. Customers represent a broad range of sectors including steel service centres, pipe and tube manufacturers, automakers, white goods companies and construction products.

Back to Homepage

Back to Metals & Mining