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Released November 02, 2022 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The majority of funding needed for one of Europe's biggest hydrogen-powered green steel plants has been secured by developer H2 Green Steel.
The company has secured 3.5 billion euro (US$3.45 billion) in debt financing from a variety of banks and investment groups to build its hydrogen-powered plant in Boden, in northern Sweden. The goal is to start production in 2024 with an estimated production capacity of 2.5 million tonnes of high-quality steel, ramping up to 5 million tonnes by 2030. Traditional blast furnace-based technology will be replaced by direct reduction reactors using green hydrogen from an electrolyser plant powered by renewable energy. The facility is expected to reduce 95% of CO2 emissions compared to traditional steelmaking. The company has been busy securing major customers and has pre-sold almost 60% of its estimated volumes. The European Investment Bank (EIB) has received board approval for 750 million euro (US$740 million) of senior debt funding for the H2 Green Steel project. With more than 4.5 billion euro (US$4.4 billion) of debt financing in place and two successful equity funding rounds completed, it rivals the Northvolt (Stockholm, Sweden) electric vehicle (EV) battery plant--also located in Sweden--as one of the best funded green technology investments in Europe. The plant is expected to cost around 5 billion euro (US$4.9 billion) in total.
"These strong commitments to our debt financing show how far we have come on our journey, in a very short time. We are impressed by the collaborative approach of these institutions and the leadership they are displaying in financing the transition. The support from the European Investment Bank, Swedish National Debt Office and some of the world's leading export credit agencies and banks, not only underlines our business case and debt carrying capacity, but also highlights the willingness to support initiatives that will help fulfill the target of the Paris agreement," said Henrik Henriksson, H2 Green Steel's chief executive officer.
Industrial Info is tracking four projects associated with the project. It is also tracking the progress of the world's leading fossil-free steel project, HYBRIT, located in the same region. That project reached a key milestone in recent weeks with the successful creation of a rock cavern storage facility for hydrogen. The pilot storage facility is understood to be the first of its kind in the world for storing fossil-free hydrogen gas. The project has already produced its first green steel using a process based on direct reduction of iron ore using renewable energy and hydrogen gas. For additional information, see October 12, 2022, article - Green Steel Project Hits Hydrogen Storage Milestone.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company has secured 3.5 billion euro (US$3.45 billion) in debt financing from a variety of banks and investment groups to build its hydrogen-powered plant in Boden, in northern Sweden. The goal is to start production in 2024 with an estimated production capacity of 2.5 million tonnes of high-quality steel, ramping up to 5 million tonnes by 2030. Traditional blast furnace-based technology will be replaced by direct reduction reactors using green hydrogen from an electrolyser plant powered by renewable energy. The facility is expected to reduce 95% of CO2 emissions compared to traditional steelmaking. The company has been busy securing major customers and has pre-sold almost 60% of its estimated volumes. The European Investment Bank (EIB) has received board approval for 750 million euro (US$740 million) of senior debt funding for the H2 Green Steel project. With more than 4.5 billion euro (US$4.4 billion) of debt financing in place and two successful equity funding rounds completed, it rivals the Northvolt (Stockholm, Sweden) electric vehicle (EV) battery plant--also located in Sweden--as one of the best funded green technology investments in Europe. The plant is expected to cost around 5 billion euro (US$4.9 billion) in total.
"These strong commitments to our debt financing show how far we have come on our journey, in a very short time. We are impressed by the collaborative approach of these institutions and the leadership they are displaying in financing the transition. The support from the European Investment Bank, Swedish National Debt Office and some of the world's leading export credit agencies and banks, not only underlines our business case and debt carrying capacity, but also highlights the willingness to support initiatives that will help fulfill the target of the Paris agreement," said Henrik Henriksson, H2 Green Steel's chief executive officer.
Industrial Info is tracking four projects associated with the project. It is also tracking the progress of the world's leading fossil-free steel project, HYBRIT, located in the same region. That project reached a key milestone in recent weeks with the successful creation of a rock cavern storage facility for hydrogen. The pilot storage facility is understood to be the first of its kind in the world for storing fossil-free hydrogen gas. The project has already produced its first green steel using a process based on direct reduction of iron ore using renewable energy and hydrogen gas. For additional information, see October 12, 2022, article - Green Steel Project Hits Hydrogen Storage Milestone.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
