H2 Green Steel signs definitive debt financing agreements for €4.2 B in project financing and increases the previously announced equity raised by €300 MM. Total equity funding to date amounts to €2.1 B. The company has also been awarded a €250-MM grant from the EU Innovation Fund. H2 Green Steel has now secured funding of close to €6.5 B for the world's first large-scale green steel plant in Northern Sweden.

H2 Green Steel is driving one of the largest climate impact initiatives globally. The company was founded in 2020 with the purpose to decarbonize hard-to-abate industries, starting by producing steel with up to 95% lower CO₂ emissions than steel made with coke-fired blast furnaces. The construction of the flagship green steel plant in Boden, with integrated green H₂ and green iron production, is well under way. The supply contracts for the H₂-, iron- and steel equipment are in place. A large portion of the electricity needed has been secured in long-term power purchase agreements, and half of the initial yearly volumes of 2.5 MMt of near zero steel have been sold in binding five- to seven-year customer agreements.

Today H2 Green Steel announces a massive milestone on its journey to accelerate the decarbonization of the steel industry, which is still one of the world’s dirtiest. The company has signed debt financing of €4.2 B, added equity of close to €300 MM and been awarded a €250-MM grant from the Innovation Fund. Funding amounts to €6.5 B in total.

H2 Green Steel has signed definitive financing documentation for €3.5 B in senior debt and an up-to-€600 MM junior debt facility:

• Consistent with project financings, international banks providing the senior debt will be lending in part under cover provided by Riksgälden (Swedish National Debt Office), as a green credit guarantee and Euler Hermes as an export credit cover for €1.2 B each. The guarantees cover 80% and 95% of the loan amount respectively and are provided in accordance with market pricing.
• The group of over 20 lenders includes Svensk Exportkredit (SEK) and the European Investment Bank together with commercial banks, led by BNP Paribas, ING, KfW IPEX-Bank, Societe Generale and UniCredit.
• The junior debt consortium is led by AIP Management and comprises European and international investment banks and funds.

H2 Green Steel has also raised close to €300 MM more in equity, bringing the private placement in the project to a total of €2.1 B. New shareholders include Microsoft Climate Innovation Fund, Mubea and Siemens Financial Services. Additionally, IMAS Foundation and Just Climate are some of the existing shareholders which are increasing their investments in H2 Green Steel. 

In September 2023, H2 Green Steel announced it had raised €1.5 B in equity, making it the largest private placement round in 2023 in Europe. Before that, the company closed its series A equity round of €86 MM in May 2021 and announced the close of its series B1 round of €260 MM in October 2022. 

H2 Green Steel has also signed a €250-MM grant agreement under the Innovation Fund through the European Climate, Infrastructure and Environment Executive Agency. The Innovation Fund is financed by the European Union’s Emissions Trading System and supports innovative projects that aim to speed up decarbonization of European industry and accelerate the green transition.