H2 Green Steel was founded in 2020 to use green hydrogen gas to eliminate carbon dioxide emissions from one of the most emission-intensive industries, steel production. The company’s expertise in green hydrogen will also be used to eliminate carbon dioxide emissions from other heavy industries. The first step is a modern, fully integrated and digitised steel factory in Boden with up to 95% reduction in carbon dioxide emissions compared to traditional steelmaking. With market-leading technology in all manufacturing stages, the ambition is to produce five million tonnes of high-quality steel per year from 2030, with production starting in 2025. Demand is significant: green high-quality steel is an enabler of fossil-free value chains for many necessary products and sectors.
The fund’s investment is made together with other investors such as AMF, Altor, GIC and Schaeffler as the largest investors, plus existing owners such as founder Vargas Holding and Kingspan, FAM, Marcegaglia, IMAS Foundation, Cristina Stenbeck and Daniel Ek. For H2 Green Steel, the financing is part of the establishment of its hydrogen-powered steel factory in Boden.
With the investment, Swedbank Robur Alternative Equity supports a cost-effective carbon-eliminating industrial transformation by investing in a company with the ambition to take a leading role in Europe’s elimination of carbon dioxide emissions from high-emission sectors. It is in line with our objective as investors to support change-driving companies that have strong management, a clear customer offering and long-term sustainable competitiveness.
Country
Sweden
Investment hypothesis
Capital for company development, starting with the establishment in Boden in Norrbotten of a fully integrated, digitalised steel factory that replaces coal in production with green hydrogen, created from fossil-free electricity. This was followed by further investments in green hydrogen, green iron and green steel.
Milestones
Investment 2022
reserve
Swedbank Robur Alternative Equity I (an alternative investment fund for institutions and other professional investors)
Website
www.stegra.com