Receive free Industrial metals updates
We’ll send you a myFT Daily Digest email rounding up the latest Industrial metals news every morning.
Europe’s leading green steel start-up is exploring plans for expansion in the US, Canada, Brazil, and Portugal following its successful fundraising for the construction of its first factory in northern Sweden. H2 Green Steel raised €1.5bn in equity from various investors, including GIC, Temasek, Al Gore’s Just Climate fund, and the Hy24 hydrogen fund. The Swedish start-up intends to utilize the funds, along with €3.5bn in debt financing raised last year, to establish a plant in Boden that will produce hydrogen from renewable energy to manufacture green steel for renowned customers such as Mercedes-Benz, Cargill, Scania, and ZF.
Henrik Henriksson, CEO of H2GS, stated that while the focus is mainly on the Boden plant, the company is also considering opportunities in four other countries and collaborating with miners Vale and Anglo American, as well as utility company Iberdrola. The potential projects involve the production of green hydrogen and fossil fuel-free sponge iron. Henriksson emphasized the importance of having local partners for each country in which they plan to expand, capitalizing on their expertise while bringing their own first-mover advantage.
H2GS aims to begin steel production, which will emit up to 95% fewer emissions than traditional methods, by the end of 2025, and achieve full production of 5 million tonnes in the following year. However, these dates represent delays due to the lingering effects of the pandemic. With most steel manufacturers seeking ways to reduce carbon emissions, H2GS’s method requires a significant amount of electricity, estimating an annual need of 13-15 terawatt hours at full production. Fortunately, northern Sweden possesses surplus energy, supporting an industrial renaissance in the area.
Aside from H2GS, the region is also home to Hybrit and Northvolt, strengthening the sustainable energy infrastructure and creating economic growth. Groundwork for the Boden plant started in the summer of 2022 and received its full environmental permit in June. The successful fundraising of €1.5bn confirms previous reports on H2GS’s plan to raise fresh equity, allowing them to move forward with their decarbonization efforts in the steel industry.
H2GS’s successful fundraising serves as a model for other companies seeking to decarbonize industries with high emissions, such as steel and cement. Pierre-Etienne Franc, CEO of the Hy24 fund, commended H2 Green Steel Boden as the most advanced large-scale green industrial project globally, leading the way in decarbonization efforts in challenging sectors like steel.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
