Stockholm-based H2 Green Steel, a startup that aims to decarbonise the steel industry using green hydrogen, announced on Wednesday that it has secured €260M in the final close of its Series B round of equity funding.
The company had announced the first close of the Series B round in August at €190M. The additional €70M in the final close came from new investors such as Hitachi Energy, Kobe Steel, and Kinnevik.
The round was co-led by AMF, GIC, and Schaeffler, alongside existing investor Altor. The company had earlier raised €86M in a Series A round in May 2021
“Kinnevik has always been a backer of challengers, investing in disruptive companies that can significantly upend their sectors. H2 Green Steel, with its ambition to decarbonise large industries starting with Steel, is a great example of a company with a strong commercial plan and the ability to move the needle in reaching global net zero, and we are excited to be part of their journey,” says Georgi Ganev Kinnevik’s CEO.
The Swedish company says it will use the funds to develop its large-scale green steel plant in Boden, Northern Sweden, producing steel with up to 95 percent lower emissions than traditional steelmaking.
“We are proud to partner with leading global institutions, investors, and industrial companies. Our investors are leaders in their respective fields and at the forefront of enabling the change required to meet our climate targets. This private placement round is a true sign of strength for our business – sustainability and profitability go hand in hand,” says Henrik Henriksson, CEO of H2 Green Steel.
H2 Green Steel: What you need to know
Steel manufacturing is one of the world’s largest carbon dioxide emitters, responsible for more than 7 per cent of global CO2 emissions.
Founded in 2020 by Vargas Holding, who co-founded battery maker Northvolt, H2 Green Steel produces green steel in a fully integrated production process, using end-to-end digitalisation, electricity from fossil-free sources, and green hydrogen instead of coal.
In July, the company obtained a permissibility permit for its operations in Boden, followed by steady progress in the construction of its steel plant.
Also, the company has pre-sold about 60 per cent of its initial volumes to a range of European customers in a broad range of sectors.
H2 Green Steel is headquartered in Stockholm, Sweden, and its first green steel plant is under development in Boden, northern Sweden.
