H2 Green Steel raises €1.5 billion in equity

H2 Green Steel has raised €1.5 billion ($1.6 billion) in equity from an investor group led by Altor, GIC, Hy24 and Just Climate. The Swedish venture claims this is the largest private placement in Europe this year.

The private placement is co-led by new investor Hy24, together with existing investors Altor, GIC and Just Climate, Kallanish learns. The transaction involves new investors Andra AP-fonden and Temasek, plus a group of existing investors that include AMF, Cristina Stenbeck, Hitachi Energy, IMAS Foundation, Kinnevik, Schaeffler, Vargas and Wallenberg Investments holding company FAM.

The proceeds will finance the construction and development of H2GS’s greenfield steel plant in Boden, Sweden, where groundworks have been ongoing since summer 2022.
“The calibre of investors that are backing us is impressive. Some of the most professional institutions, investors and industrial companies globally are part of this round … and it proves the market demand for green steel,” says Henrik Henriksson, chief executive of H2GS.

Since launching in 2021, H2GS has raised more than €1.8 billion of equity in three financing rounds. The company closed its series A equity round of €86 million in May 2021 and announced the close of its series B1 round of €260m in October 2022.

Christian Koehl Germany