1 minute reading time (288 words)

H2 Green Steel sews up €4.2 billion in financing for green steel plant

Image: H2 Green Steel

Swedish steelmaker H2 Green Steel announced the company had signed definitive debt financing agreements for up to €4.2 billion in project financing for the company's upcoming green steel plant in Boden, Sweden.

H2 Green Steel, founded in 2020 to decarbonize the hard-to-abate steelmaking sector, will produce steel with up to 95 percent lower CO2 emissions than steel made with coke-fired blast furnaces once its under-construction plant turns operational.

The company says it has placed supply contracts for the hydrogen-, iron- and steel equipment, and secured a large portion of its electricity requirement through long-term power purchase agreements. It has also tied up customers (including Germany's BMW Group and Japan's Hitachi) for half its initial yearly output of 2.5 million tonnes in binding five- to seven-year agreements. 

H2 Green Steel's financing agreement includes €3.5 billion in senior debt from over 20 lenders including Svensk Exportkredit (SEK) and the European Investment Bank, together with commercial banks led by BNP Paribas, ING, KfW IPEX-Bank, Societe Generale and UniCredit. The company has also availed up to €600 million in junior debt from a consortium comprising European and international investment banks and funds led by AIP Management.

With this, the company has secured close to €6.5 billion of funding for the world's first large-scale green steel plant, of which €2.1 billion is equity funding. The company has also received a grant of €250 million from the EU Innovation Fund.

Coal-fired Poland changes stance, plans to set end date for fossil fuels

Poland's new government plans to set an end date for generating power from coal, the country's Secretary of State for Climate Urszula Zielinska said on Monday, reversing the previo...
https://etn.news/buzz/poland-plans-end-date-for-fossil-fuels
Author : Mandar Bakre
TotalEnergies acquires German battery storage deve...
VARTA expanding R&D capabilities for next-gen batt...
arrow_upward