H2 Green Steel closes €190M equity funding round

The Swedish green impact company H2 Green Steel is securing € 190 million in the first close of the series B equity financing from a selected group of investors, showing strong support for the company.

The equity round was co-led by new investors AMF, GIC and Schaeffler, alongside existing investor Altor Fund V.

Also participating in the equity raise is new investor Swedbank Robur Alternative Equity, and existing shareholders Vargas, Kingspan, FAM, Marcegaglia, IMAS Foundation, Cristina Stenbeck and Daniel Ek continue to support the company with additional equity funding.

H2 Green Steel aims to transform industries that generate significant carbon emissions, starting with steel through a green hydrogen-powered steel plant in Boden in Northern Sweden.

After its launch in February 2021 and the close of its series A equity round the following May, the company has rapidly received a permissibility permit for its operations in Boden, securing a 14 TWh agreement for renewable electricity and initiating groundworks and construction. Now it is reaching another milestone in the financing, adding to the solid group of investors from the first investment round.

Henrik Henriksson, CEO of H2 Green Steel, said, “This financing round has allowed us to combine leading industrial companies and global financial institutions, with investors with a strong Swedish participation, creating the investor-base that will set us up for success.”

Klas Johansson, Partner at Altor, said, “It fits perfectly with our increased efforts to invest in green transition ventures, where we have made a number of other investments such as OX2, Svea Solar and Vianode.”

Anders Oscarsson, Head of Equity at AMF, said, “H2 Green Steel has an ambitious strategy for establishment and growth, and the outlook for a speedy start of production of the fossil-free steel that is in high demand and that is very much needed in this global shift, look very good.”

Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC, said, “H2 Green Steel is the global pioneer in producing carbon-free steel and we are excited to support the company’s mission to decarbonize hard-to-abate industries.”

Schaeffler AG has a commercial partnership with H2 Green Steel and significantly strengthens the relationship with a new technical partnership and an equity investment.

Andreas Schick, Chief Operating Officer of Schaeffler AG, said, “Through its participation, Schaeffler secures its long-term supply of green strip steel and significantly strengthens its network in this crucial material area.”

Henrik Lundh, Head of Alternative Investments at Swedbank Robur, said, “By investing in H2 Green Steel, we support an efficient production of green hydrogen and green steel.”