H2 Green Steel (H2GS) raises $105 million in the initial funding round

The Swedish company will expedite the transition into more sustainable steelmaking using green hydrogen.

Sweden’s H2 Green Steel (H2GS) has raised US$ 105 million, by closing a Series A equity financing round, from a broad range of strategic partners, customers and financial investors.

New investors include a broad spectrum of companies and individuals ranging from strategic off-takers, technical partners and long-term investors focusing on green impact, sustainability and industry 4.0. Some of the investors include:

  • Altor Fund V
  • Ane & Robert Maersk Uggla
  • BILSTEIN GROUP
  • EIT InnoEnergy
  • Exor
  • FAM
  • IMAS Foundation
  • Kingspan
  • Marcegaglia
  • Mercedes-Benz AG
  • Scania
  • SMS Group
  • Stena Metall Finans
  • Cristina Stenbeck
  • Daniel Ek

The Swedish venture H2GS announced its plan in February 2021 of becoming a large-scale steel producer and built a greenfield steel plant in northern Sweden. The plant will be located in Boden and include a giga-scale green hydrogen plant as an integrated part of the steel production facility. Production will begin in 2024, and by 2030, H2GS will have a production capacity of 5 million tonnes/year of high-quality steel.

H2GS aims to accelerate the transformation of the European steel industry and will be a large-scale steel producer using hydrogen for steel production targeting large European OEMs.

H2GS has been developed in close collaboration between the founding investor Vargas and several strategic and long-term investors that are global leaders in sustainability and digitalisation.

The global steel industry is one of the world’s largest polluting industry and accounts for around 7% of global CO2 emissions. Demand for fossil-free steel is growing rapidly across end-users such as automotive, white goods, furniture, and construction.

Henrik Henriksson, the CEO of H2 Green Steel, said, “We’ve seen a tremendous interest, both from the industry, future customers and long-term investors, in our mission to bring down co2-emissions to zero in the steel industry.”

He further added, “Our closing of the Series A is an important milestone that gives us continued momentum for the journey ahead.”

Ethan Mandel

Ethan is the special correspondent for Europe covering the hydrogen industry for H2 Bulletin. Please click on the email icon to contact me via email or follow me on social media. I am reachable on Phone: +44 (0) 208 123 7812
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