H2 Green Steel, a startup specializing in decarbonized steel, has raised an extra €70 million ($69 million) in its series B fundraising round, increasing the total amount raised in the round, which was previously disclosed in August, to €260 million. The funds will be used primarily to construct a 5 million-ton green steel facility in Boden, Sweden.
Alongside previous investors Hitachi Energy and Kobe Steel, new investors in the round included the Swedish investment firm Kinnevik and a climate-focused institutional investment fund.
Kinnevik CEO Georgi Ganev, said:
"H2 Green Steel, with its goal to decarbonize huge sectors beginning with steel, is a terrific example of a firm with a strong commercial plan and the ability to move the needle toward global net zero, and we are delighted to be a part of their journey."
H2 Green Steel, founded in 2020, is constructing the world's first large-scale fossil-free steel mill, with a gig-scale green hydrogen plant integrated within the steel production facility. The company uses hydrogen from renewable energy to remove oxygen from iron oxide, preventing 95% of the CO2 emissions that would otherwise be produced. H2GS aspires to produce 5 million tonnes of fossil-free steel by 2030 using electricity derived from 100% renewable sources to meet the energy requirements of the manufacturing process.
As global manufacturers strive to decarbonize their supply chains, the demand for fossil-free steel is likely to expand dramatically. Globally, steelmaking is one of the largest emitters of CO2 and one of the most difficult sectors to mitigate, with overall greenhouse gas emissions (GHG) from the sector accounting for between 7 and 9 percent of direct emissions from the use of fossil fuels. The use of green hydrogen as a production fuel is viewed as one of the most promising strategies for decarbonizing the sector.
H2 Green Steel reported that it had already pre-sold approximately sixty percent of its initial quantities to a variety of European customers in a variety of industries.
Henrik Henriksson, CEO of H2 Green Steel, said:
"We are happy to cooperate with world-renowned institutions, investors, and industrial firms. Our investors are leaders in their respective professions and at the forefront of facilitating the transformation necessary to achieve our climate goals. This private placement is a great indication of our company's success, as sustainability and profitability go hand in hand."