Sweden’s H2 Green Steel raises additional funds for green steel plant

Photo: H2 Green Steel

H2 Green Steel in Sweden recently announced that it has secured €260 million in series B equity funding. The final close of the private placement adds €70 million in new investments from investors such as Hitachi Energy, Kobe Steel and Kinnevik.

The private placement round that was co-led by AMF, GIC and Schaeffler, alongside existing investor Altor, reaches €260 million in its final close. In addition to already communicated investments by Hitachi Energy and Kobe Steel, the close of the round adds new shareholders Swedish investment company Kinnevik, and a climate-focused institutional investment fund.

The series B equity proceeds will primarily be used to develop the company’s large scale green steel plant in northern Sweden, where H2 Green Steel will produce 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 closed its series A equity round of €86 million in May 2021 and announced the first close of its series B round of €190 million in August 2022.

In addition to financing, H2 Green Steel has reached several milestones at high speed, including a permissibility permit for its operations in Boden in July followed by steady progress in the construction of its steel plant. The company has pre-sold about 60 percent of its initial volumes to a range of European customers in a broad range of sectors.

“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 decarbonize 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.