Europe's Leading Green Steel Project Gets $1.6 Billion Boost

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--H2 Green Steel has raised 1.5 billion euro (US$1.6 billion) in private equity to continue building Europe's largest planned green steel project in Boden, Sweden.

The equity, from an investor group, is the largest private placement in Europe this year and will not only help complete the green steel plant, but also Europe's first giga-scale electrolyzer. The company has already raised a total of 1.8 billion euro (US$1.92 billion) from three previous funding rounds since 2021 as well as receiving a funding boost from the European Union (EU) this summer as part of a 3.6 billion-euro (US$4 billion) funding package to 41 large-scale clean tech projects. For additional information, see July 25, 2023, article - EU Awards $4 Billion To Clean Tech Projects.

Using 20-megawatt (MW) "scalum" electrolysis modules from thyssenkrupp nucera, part of Germany's Thyssenkrupp (Essen), the company aims to produce 2.5 million tons of green steel per year, with a planned ramp-up to 5 million tons by 2030. Up to 700 megawatts (MW) capacity of the alkaline water electrolysis (AWE) modules will be delivered. Operations are planned to start at the end of 2025, with a scheduled ramp-up in 2026. Groundworks have been ongoing on the site in Boden since summer 2022.

"The caliber of investors that are backing us is impressive," said Henrik Henriksson, chief executive officer of H2 Green Steel. "Some of the most professional institutions, investors and industrial companies globally are part of this round and we are proud that they all share our commitment to sustainability as their true north. 1.5 billion euro is the largest private placement in Europe this year and the appetite to invest in us proves both our solid business case and the market demand for green steel."

The company is also celebrating signing some major future customers, including global homeware retailer IKEA and car maker Volvo Cars (Gothenburg, Sweden). IKEA intends to use green steel from the Boden plant to replace 50% of the steel racking used in its global warehousing operations. Karen Pflug, Chief Sustainability Officer, Ingka Group (IKEA), explained: "The innovation of companies like H2 Green Steel holds great potential for a positive business and climate impact. Significant steel volumes from our warehouse racking business will contain green steel. Such improvements will allow us to transition from traditional steel to less carbon-intensive and can support us in reducing carbon emissions in this category by up to 95 percent."

At Volvo, the company aims to use green steel in the construction of its commercial fleet, including trucks, buses and construction machines. It said the shift towards green steel is "a vital element for its continued journey towards decarbonization." In June, Industrial Info reported that German car major Mercedes-Benz (Stuttgart, Germany)--an early investor in the Boden project--signed a deal with H2 Green Steel to take 50,000 tonnes of green steel annually for use in its European production. It is also working with the company and partners in the U.S. and Canada to create a green steel operation in the U.S. For additional information, see June 22, 2023, article - Mercedes-Benz Invests in Green Steel.

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