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H2 Green Steel completes strong USD 105 million initial funding round to accelerate the transition into fossil-free steel making

The Swedish green impact company H2 Green Steel (“H2GS”) has raised USD 105 million in Series A equity. H2GS will accelerate the transition into a more sustainable steel production to meet the rapidly growing demand for fossil-free steel. The Series A round underscores a strong interest among a broad range of strategic partners, customers and financial investors.

H2GS aims to accelerate the transformation of the European steel industry. The company will be a large-scale steel producer based on a fossil-free manufacturing process primarily 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.

H2GS has now successfully closed its Series A equity financing of USD 105 million from a select group of investors. The strong investor interest and high-quality investor base demonstrate a firm belief in H2GS and the market potential for green steel. 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.

The Series A round 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, and Vargas.

Henrik Henriksson, CEO, H2 Green Steel, says:

“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. Investors all over Europe understand that the climate crisis is the biggest challenge of our time and that a transformation of the industry is necessary. Our closing of the Series A is an important milestone that gives us continued momentum for the journey ahead”.

The global steel industry is one of the world’s largest emitters of carbon dioxide, representing approximately seven percent of global CO2 emissions. Demand for fossil-free steel is growing rapidly with strong interest from global market leaders in sectors such as automotive, commercial vehicles, white goods, furniture, and construction.

On February 23, 2021, the Swedish venture H2GS announced its plan to become a large-scale steel producer and build a greenfield steel plant in northern Sweden. The plant will be located in Boden, offering unique conditions for cost competitive fossil-free steel production. The project includes 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 annual production capacity of five million tons of high-quality steel.

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