H2 Green Steel, a Swedish start-up, has raised €1.5 billion ($1.6 billion) in private equity funding to construct a low-carbon steel plant in northern Sweden.
The round was co-led by investors including private equity firm Altor, Singapore’s GIC, European hydrogen-focused investors Hy24, and Just Climate, an investment business from Generation Investment Management.
Image: H2 Green Steel
Other participating investors include Temasek, Hitachi, Swedish pension funds AP2 and AMF, investor Cristina Stenbeck, the IKEA-linked IMAS Foundation, VC firm Kinnevik, industrial company Schaeffler, impact investors Vargas, and the Wallenberg family asset management company FAM. The funding round is the largest private placement in Europe this year.
The plant, set to begin operations in 2025, will be H2 Green Steel’s first large-scale green steel plant and will use hydrogen produced from clean energy to make steel with 95% fewer carbon emissions than traditional methods.
The plant will cater to customers such as Mercedes-Benz.
Steel production is responsible for 8% of global carbon emissions, and H2 Green Steel’s innovative approach to steel production is a significant step towards reducing greenhouse gas emissions.
The plant will be built in the Swedish region near battery maker Northvolt and another green steel company, Hybrit.
H2 Green Steel’s technology will significantly reduce carbon dioxide emissions, as traditional steel production methods rely heavily on carbon-intensive coal. The company’s innovative approach to steel production involves using hydrogen instead of coal to produce steel. The plant will make hydrogen from clean energy and use it to make green steel.
The plant’s construction will create job opportunities and contribute to Sweden’s clean economy. The funding round includes a who’s-who of Sweden’s financiers, making H2 Green Steel a poster child for Sweden’s clean economy.
