H2 Green Steel secures EUR 4.2 billion
BODEN H2 Green Steel signs definitive debt financing agreements for EUR 4.2 billion in so-called project financing.
At the same time, EUR 300 million is added from investors. New shareholders include Microsoft Climate Innovation Fund, Mubea and Siemens Financial Services. Existing shareholders increasing their investments include IMAS Foundation and Just Climate. This brings the total share capital of the company to EUR 2.1 billion.
“No one has scrutinized our project more thoroughly than those who back our financing. This massive commitment from our lenders, investors and the Innovation Fund is true recognition of the quality of our company. It’s also a big win for the climate as we hope the model will inspire the financing of other decarbonization initiatives in hard-to-abate industries,” says Henrik Henriksson, CEO of H2 Green Steel.
The company has also been awarded approximately EUR 250 million from the EU’s Innovation Fund. Thus, H2 Green Steel has secured financing of almost EUR 6.5 billion.
“H2 Green Steel is an excellent example of the kind of breakthrough projects that the EU Innovation Fund is supporting. The EU is proud to support these solutions to decarbonize the European steel industry and keep it competitive in a challenging global environment. We congratulate the H2 Green Steel team on their dedication and hard work, and look forward to supporting similar initiatives all over Europe,” says Kurt Vandeberghe, Director General for Climate Action, European Commission.
The more than 20 lenders include Swedish Export Credit Corporation (SEK) and the European Investment Bank, and commercial banks led by BNP Paribas, ING, KfW IPEX-Bank, Societe Generale and UniCredit.
“Working closely with the exceptional H2 Green Steel team since the inception of the project in 2021, we are extremely proud to have supported the venture in this precedent setting financing. This transaction illustrates very well how industrial innovation can be financed to enable transition. A huge milestone for the European low carbon steel industry,” says Christophe Hadjal, Managing Director, Regional Head for Europe Mining, Metals and Industries Finance, Societe Generale.
Lennart Håkansson
