Stockholm-based H2 Green Steel, a green impact company, announced on Monday, August 29, that it has raised €190M in the first close of a series B equity round of funding. The investment was co-led by new investors AMF, GIC and Schaeffler, alongside existing investor Altor Fund V.
The round also saw participation from new investor Swedbank Robur Alternative Equity and existing shareholders Vargas, Kingspan, FAM, Marcegaglia, IMAS Foundation, Cristina Stenbeck, and Daniel Ek.
Choo Yong Cheen, Chief Investment Officer of GIC, says, “We support H2 Green Steel’s mission to decarbonise hard-to-abate industries. GIC is committed to providing capital to develop solutions that decarbonise the economy. We look forward to supporting the H2 Green Steel leadership team, as they deliver on their first greenfield opportunity and meet the already outsized demand for their product.”
Schaeffler, which already has a commercial partnership with H2 Green Steel, strengthens its relationship with a new technical partnership and an equity investment.
Andreas Schick, COO of Schaeffler, adds, “We are proud to be an investor and a strategic technology partner for H2 Green Steel. Together we will contribute to decarbonising supply chains. Through its participation, Schaeffler secures its long-term supply of green strip steel and significantly strengthens its network in this crucial material area.”
Capital utilisation
H2 Green Steel’s goal is to revolutionise sectors that produce large amounts of carbon emissions, starting with the steel industry by building a green hydrogen-powered steel factory in Boden, northern Sweden.
The company will construct a giga-scale electrolyser in Boden that will use clean energy generated without the use of fossil fuels to produce the green hydrogen required to provide the market with 5 million tonnes of high-quality steel by 2030.
Henrik Henriksson, CEO of H2 Green Steel, says, “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 strong Swedish participation, creating the investor-base that will set us up for success.”
Decarbonising hard-to-abate industries
Founded in 2020, H2 Green Steel is a producer of green steel, which involves the use of less carbon dioxide emissions compared to traditional steelmaking. The company’s aim is to accelerate the decarbonisation of the steel industry using green hydrogen.
After launching in February 2021, and raising Series A funding in May, the company claims to have obtained a permissibility permit for its operations in Boden at a record pace, securing a 14 TWh renewable electricity agreement, and starting groundwork and construction.
About 60 per cent of H2 Green Steel’s initial quantities have already been pre-sold, demonstrating the need for decarbonised steel. The company’s customers come from diverse industries, including steel service centres, pipe and tube, passenger vehicles and heavy commercial vehicles, whitegoods, and construction products.
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