H2 Green Steel Boden vision mage. Image by H2 Green Steel (www.h2greensteel.com)
August 31 (Renewables Now) - Swedish start-up H2 Green Steel, which aims to build a green hydrogen-powered steel plant in Boden, northern Sweden, has raised EUR 190 million (USD 190.6m) in the first close of a series B funding round, it said on Monday.
The round was co-led by Swedish pension fund AMF, Singapore's Government Investment Corporation (GIC) and German automotive and industrial supplier Schaeffler AG (ETR:SHA), which are new investors, and existing investor Altor Fund V. Other participants include new investor Swedbank Robur Alternative Equity and existing shareholders Vargas, Kingspan, FAM, Marcegaglia, IMAS Foundation, Cristina Stenbeck and Daniel Ek.
H2 Green Steel, which has already secured a permissibility permit for its plant in Boden and started groundwork and construction, said the financing showed confidence in the company despite the uncertainty in global markets.
“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,” added chief executive Henrik Henriksson.
Andreas Schick, chief operating officer of Schaeffler, which has a commercial partnership with H2 Green Steel, said securing supply chains and making them more sustainable is a top priority for the company. “Through its participation, Schaeffler secures its long-term supply of green strip steel and significantly strengthens its network in this crucial material area,” Schick added.
H2 Green Steel says it has pre-sold about 60% of its initial volumes.