H2 Green Steel, a visionary company in the sustainable steel production arena from Green Hydrogen, has successfully secured a monumental loan of 48 billion Swedish Krona (SEK). This significant financial achievement marks a pivotal moment in the company’s journey towards establishing the world’s first large-scale green steel plant.
The announcement comes as a result of rigorous efforts by the company to gather financial support for its ambitious project. The steel manufacturer, under the guidance of CEO Henrik Henriksson, has navigated complex negotiations to secure this funding from a consortium of influential investors.
Key players in the lending group include the Swedish Export Credit and the European Investment Bank (EIB). Additionally, global banking giants like BNP Paribas and the Dutch bank ING have also contributed to the project’s financial backing.
In a strategic move to further bolster its financial base, H2 Green Steel has also secured an additional SEK 3.4 billion in capital contributions. Notable contributors to this fund include a Microsoft-affiliated fund and industrial stalwart Siemens. This influx of capital has significantly increased the company’s total share capital, bringing it to an impressive SEK 24 billion.
The combined financial commitments amount to a staggering total of SEK 75 billion. This funding is earmarked for the construction and operation of H2 Green Steel’s facility in Boden. CEO Henrik Henriksson shared his optimism about the project, stating that this level of investment would enable the company to begin production by the end of 2025.
Henriksson expressed his confidence in the initiative, highlighting its potential to revolutionize one of the traditionally dirtiest industries in the world. “We have now put together a structure and a package to transform one of the world’s dirtiest industries,” he remarked, emphasizing the transformative nature of the project.
Despite the significant financial backing, H2 Green Steel’s fossil-free steel project has faced skepticism from some quarters. A report released in November by researcher Magnus Henrekson, funded by noted financial figures such as Christer Gardell, Rune Andersson, and Carl Bennet, raised concerns about the mega-projects in Norrbotten. Henrekson warned of potential impacts on electricity prices and the profitability of such large-scale projects, which could affect numerous communities in northern Sweden.
Addressing these concerns, H2 Green Steel has been steadfast in its commitment to its vision. The company has continually refuted the skepticism surrounding its operations and the viability of the project. “No one has scrutinized our operations more thoroughly than those financing our project,” Henriksson asserted in a recent press release. He emphasized the significant support from lenders, investors, and the EU Innovation Fund as a testament to the credibility and potential of H2 Green Steel.
As the company moves forward with its groundbreaking project in Boden, it stands at the forefront of a new era in steel manufacturing. With a clear focus on sustainability and innovation, H2 Green Steel is poised to make a significant impact on the global steel industry and contribute to a more sustainable future.
