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.”
