A group of investors is committing 18 billion kronor to ensure the construction of H2 Green Steel’s steel mill in Boden.

The announcement from H2 Green Steel means that the company can continue its plans to establish the world’s first large-scale green steel mill in Boden and Europe’s largest hydrogen facility.

According to the company, it is the largest private capital raise of the year. Among the new investors are Altor, GIC, Hy24, and Just Climate, but also previous investors such as AMF, Cristina Stenbeck, Hitachi Energy, IMAS Foundation, Kinnevik, Schaeffler, Vargas, and Wallenberg Investments’ parent company FAM.

“The caliber of investors backing us is impressive. Some of the world’s most professional institutions, investors and industrial companies are joining this round and we are proud that they all share our view of sustainability as a guiding principle,” says Henrik Henriksson, CEO of H2 Green Steel.

New level of ambition

The revenues will be used to continue the development of the steel mill in Boden. Groundwork has been ongoing since 2022 and production is expected to start at the end of 2025.

By replacing coal with hydrogen, the plant will be able to deliver steel with up to 95% lower CO2 emissions than steel produced using blast furnace technology. Development of technology and digitalization, along with a completely new ambition level for the industry in areas such as circularity and recycling, will make this steel mill the first of its kind.

“18 billion is the largest private capital raise in Europe this year and the appetite to invest in us is evidence of both our strong business case and the market demand for green steel,” says Henrik Henriksson.

Earlier this week, it also became clear that H2GS is buying parts of the land at Boden Industrial Park from the municipality for SEK 134 million.