Co-led by new investors, AMF, GOC, Schaeffler, and Altor Fund V, the equity round saw investment from Swedbank Robur Alternative Equity, as well as existing shareholders, Vargas, Kingspan, FAM, Marcegaglia, IMAS Foundation, Cristina Stenbeck and Daniel Ek.
The latest fundraising results follow on H2 Green Steel’s announcement last Friday (August 26) that it had broken ground on its green steel and hydrogen production facility in Boden, Sweden.
Read more: H2 Green Steel breaks ground at Boden hydrogen production facility
After launching in February 2021, the company says it has pre-sold approximately 60% of its initial volumes of green steel, with customers representing sectors including steel service centres, pipe and tube, passenger vehicles, heavy commercial vehicles, whitegoods, and construction products.
Commenting on the funding raise, Henrik Henriksson, CEO of H2 Green Steel, said, “This financing milestone is a real statement of confidence in H2 Green Steel. Despite the uncertainty in global markets, a venture like outs, 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.”
Schaeffler AG comes as a new commercial partner to H2 Green Steel, strengthening relationships with a new technical partnership and equity investment. Andreas Schick, Chief Operating Officer at Schaeffler AG, said, “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.”
Henrik Lundh, Head of Alternative Investments at Swedbank Robur, commented, “By investing in H2 Green Steel, we support an efficient production of green hydrogen and green steel and thereby support a cost-competitive decarbonised industry development.”
Green is the new black: An interview with H2 Green Steel
©H2 Green Steel
From the buildings you live in, the cars you drive, appliances in your house, to the equipment manufacturing our goods, steel makes up some part of it, making its way into all of our daily lives. With 1,950.5 million tonnes produced in 2021, according to the World Steel Association1, it appears to be one of the most intertwined materials in our societies.
Despite the high demand and use, steel production remains to be highly emission-intensive, with The Industry Transition reporting that annual steel production generates approximately three billion tonnes of carbon dioxide emissions, accounting for 8% of global carbon dioxide emissions2.
Our reliance on the material and continuation of using carbon-heavy production methods pose a strong threat to goals of meeting Net Zero emissions by 2050. However, in recent years the possibilities to decarbonise this hard-to-abate sector have grown thanks to the development of hydrogen technologies.
One company forging the way for a greener steel industry is Sweden-based, H2 Green Steel. Its story started at a board meeting of Northvolt, a Swedish green battery cell producer, founded by Vargas, an impact company builder that claims to challenge old truths and conventional ways of working.
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