H2 Green Steel raises €3.5 billion for project in Sweden

The company plans to build a steel plant that will use green hydrogen

Sweden’s H2 Green Steel has announced that it has secured €3.5 billion in debt financing from European institutions to build a hydrogen-powered steel plant. The company’s website reports about it.

The construction of the plant in the city of Boden in the north of Sweden, which will use green hydrogen, will be financed by debt and own funds. The launch of production at the site is planned for the end of 2025.

The company received conditional obligations for priority debt in the amount of €3.3 billion from the Swedish Export Credit Corporation (Svensk Exportkredit) and five commercial banks (BNP Paribas, ING, UniCredit, Societe Generale and KfW IPEX-Bank). Certain other lenders have issued letters of intent regarding credit guarantees.

According to Henrik Henriksson, CEO of H2 Green Steel, the participation of European institutions, the Swedish National Debt Office, global export credit agencies and banks underlines the readiness to support initiatives that will help achieve the goal of the Paris Agreement.

H2 Green Steel plans to have a production capacity of 5 million tons of green steel per year by 2023, which can reduce carbon emissions by 95% compared to conventional production.

As GMK Center reported earlier, German steelmaker Salzgitter Group and electrolysis producer Sunfire have completed the EU-funded Green Industrial Hydrogen (GrlnHy2.0) project. The project was completed with a record production of almost 100,000 tons of green hydrogen for the production of green steel.

Also, the South African petrochemical company Sasol and the steel producer ArcelorMittal South Africa have signed a memorandum of understanding on cooperation in the field of green energy. Companies will develop carbon capture technology to produce clean fuels and chemicals. In addition, they will cooperate in the use of green hydrogen for steel production.