H2 Green Steel Raises $4.58 Billion in Debt Financing for New Plant
January 22 2024 - 5:35AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--H2 Green Steel has raised 4.2 billion euros ($4.58
billion) in debt financing to build its green hydrogen-powered
steel plant in northern Sweden, bringing its total secured funding
for the project to nearly EUR6.5 billion, it said Monday.
The company's plant will deliver steel with up to 95% less
carbon-dioxide emissions compared to steel produced with
traditional blast-furnace technology, made possible by replacing
coal in the production process with hydrogen produced on-site with
an electrolyzer, using electricity from renewable sources.
Construction of the plant is well under way and half of the
initial annual volumes of 2.5 million tons of steel have been sold
in binding five- to seven-year customer agreements, it said.
"Today H2 Green Steel announces a massive milestone on its
journey to accelerate the decarbonization of the steel industry,"
the company said in a statement.
"The company has signed debt financing of EUR4.2 billion, added
equity of close to EUR300 million and been awarded a EUR250 million
grant from the Innovation Fund."
The group of over 20 lenders includes 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 junior debt consortium is led by AIP Management and
comprises European and international investment banks and funds.
New shareholders include Microsoft Climate Innovation Fund, Mubea
and Siemens Financial Services.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
January 22, 2024 06:20 ET (11:20 GMT)
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