H2 Green Steel is securing a total of €190 million ($190m) in the first close of the series B equity financing from a selected group of investors, Kallanish notes. The firm says this shows strong support for the venture.
The equity round was co-led by new investors AMF, GIC and Schaeffler, alongside existing investor Altor Fund V. Also participating in the equity raise is new investor Swedbank Robur Alternative Equity, while existing shareholders Vargas, Kingspan, FAM, Marcegaglia, IMAS Foundation, Cristina Stenbeck and Daniel Ek continue to support the company with additional equity funding.
“This financing milestone is a real statement of confidence in H2 Green Steel. 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 a strong Swedish participation, creating the investor-base that will set us up for success,” says H2 Green Steel chief executive Henrik Henriksson.
H2 Green Steel says it has pre-sold about 60% of its initial volumes to customers ranging from steel service centres to pipemakers, and passenger vehicles and heavy commercial vehicles, as well as whitegoods and construction products manufacturers.
Schaeffler already has a commercial partnership with H2 Green Steel. Its chief operating officer, Andreas Schick, says: “Securing supply chains and making them more sustainable is a top priority for Schaeffler. 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.”
Adam Smith Poland
