The company has also invested in ABB E-mobility and Meva Energy and said all three companies reflect Just Climate’s approach of investing in ‘scalable solutions with transformational potential that can help to deliver sector-wide decarbonisation in hard-to-abate industries’.
A spokesperson said the investment in H2 Green Steel forms part of the steelmaker’s €260m Series B fundraising, announced on October 19 last year. The proceeds will be used to develop the company’s first large scale, green steel plant – the Boden Project – in northern Sweden.
H2 Green Steel is an industrial start-up based in Sweden which aims to accelerate the decarbonisation of the steel industry – one of the hardest-to-abate industries, responsible for more than 7% of emissions, according to the IEA. By replacing coal traditionally used in steelmaking with green hydrogen powered by renewable electricity, the company aims to reduce emissions of steel by as much as 95%.
Clara Barby CBE, Senior Partner of Just Climate, said: “We established Just Climate to accelerate commercialisation of solutions for the hardest-to-abate emissions. Some solutions will come from new businesses, others from large incumbents. Our first investments demonstrate this range and have the potential to generate attractive risk-adjusted returns through outsized greenhouse gas emissions abatement in the next 10 years.”
Shaun Kingsbury CBE, Chief Investment Officer of Just Climate, said its first investments will accelerate commercialisation of 95% decarbonised steel, a natural gas substitute based on wood waste from other industrial processes, and electric charging solutions for a wider range of road transport that requires high- powered charging.
He said, “All three solutions bring to life our thesis of investing in transformational solutions for the highest-emitting, hard-to-abate sectors while delivering attractive risk-adjusted returns for our investors.”
Henrik Henriksson, CEO of H2 Green Steel, said: “Those who have invested in our company are all at the forefront of enabling the change required to meet the targets of the Paris Agreement. Just Climate is no exception. They believe in our business case as well as our purpose to accelerate decarbonisation of heavy polluting industries. Being among the first green impact investments of Just Climate shows the impact our company will have on some of the dirtiest industries today.”
Limiting the global temperature rise to 1.5 degrees celsius will require an investment of $3trn per year to 2050, according to the IPCC. Other estimates are even higher, especially when protecting biodiversity and ensuring a just transition are included.
In an exclusive column for H2 View, Kajsa Ryttenberg-Wallgren, Executive Vice President, Head of Business Unit Hydrogen at H2 Green Steel, said it is examining the prospects for “a second, third and even fourth plant”, as there are many places in the world with a green hydroelectric energy supply – northern Sweden, northern Norway, some provinces in Canada and Brazil.
Read more: 12 Days of Content: Kajsa Ryttenberg-Wallgreen, H2 Green Steel