Swedish low carbon steel developer H2 Green Steel has secured Eur260 million ($255.2 million) in equity funding via a private placement to fund the development of its low carbon steel plant in Sweden, the company said Oct. 19.
H2 Green Steel is building a green hydrogen powered steel plant in Boden, northern Sweden, that will have an initial production of 2.5 million mt/year from 2025, potentially increasing to 5 million mt/year by 2030.
The company’s process will remove up to 95% of carbon emissions compared with traditional steelmaking with a blast furnace and iron ore.
The Platts 62% Fe Iron Ore index was at $94.80/dry mt CFR North China Oct. 18, down 20.7% since the start of 2022. Platts is part of S&P Global Commodity Insights.
The company has presold about 60% of its initial volumes to a range of European customers in a broad range of sectors, it said.
H2 Green Steel raised Eur190 million in an August funding round and an initial Eur86 million in May 2021.
The latest round of funding added Eur70 million in new investments from Hitachi Energy, Swedish investment company Kinnevik, an unnamed climate-focused institutional investment fund, and Japanese steelmaker Kobe Steel, with the latter’s investment announced earlier in October.
“Our investors are leaders in their respective fields and at the forefront of enabling the change required to meet our climate targets,” H2 Green Steel CEO Henrik Henriksson said.
The company received a permissibility permit in July, with plant construction progressing steadily.
— Jacqueline Holman