Swedish startup H2 Green Steel, which aims to build a clean hydrogen steel plant in Boden in northern Sweden, has raised €190m ($190.6m) in its first round of funding, according to message H2 Green Steel on Monday.
The round was co-hosted by the Swedish Pension Fund AMF, the Singapore Public Investment Corporation (GIC) and the German automotive and industrial supplier Schaeffler AG (ETR:SHA), who are new investors, and existing investor Altor Fund V. Other participants include - new investor. Swedbank Robur Alternative Equity and existing shareholders Vargas, Kingspan, FAM, Marcegaglia, IMAS Foundation, Christina Stenbeck and Daniel Ek.
H2 Green Steel, which has already received approval to build its plant in Boden and has begun earthworks and construction, said the funding showed confidence in the company despite global market uncertainty.
“This funding round has enabled us to bring together leading industrial companies and global financial institutions with investors with strong Swedish ownership, creating an investor base that will set us up for success,” added CEO Henrik Henriksson.
Andreas Schick, COO of Schaeffler, which has a commercial partnership with H2 Green Steel, said securing supply chains and making them more resilient is a top priority for the company.
"Through its involvement, Schaeffler secures a long-term supply of flat steel and significantly strengthens its network in this critical material area," Schick added.
H2 Green Steel said it had pre-sold about 60 percent of its initial volumes, indicating demand for decarburized steel. The company's customers come from a wide range of sectors, including structural steel service centers, tubes and pipes, passenger cars and heavy commercial vehicles, household appliances and construction products.
