H2 Green Steel has raised $1.6bn with help from an investor group which included Hy24, Altor, GIC, and Just Climate, also including Andra AP – fonden and Temasek, plus a pre-existing group of investors. This money will go into building a large-scale green steel plant and a giga-scale hydrogen electrolyser.

The project will be based in Boden, Sweden and operations are expected to begin at the end of 2025. The green steel plant is a major development as compared to a regular steel plant, the green steel will produce 95% less carbon dioxide (CO2) emissions. This low-carbon steel production will be made feasible by taking the coal out of the process and replacing it with hydrogen. The hydrogen which will be used in the green steel plant will be produced from Europe’s ‘largest’ electrolyser using electricity supplied by renewable sources.

The overall aim for this project is to work on decarbonising the steel production industry and this aim is what the project investors are interested in.

Henrik Henriksson the CEO of H2 Green Steel, said, “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.”

The companies investing in this project have made it clear that their focus is on the environment and in June 2023, H2 Green Stel announced that the project has received a full environmental permit for the facility in Boden. The plant will be able to start operating when it is ready.