Sweden’s H2 Green Steel raises 190 million euros in funding

STOCKHOLM (Reuters) – Swedish steel venture H2 Green Steel said on Monday it has raised 190 million euros from a group of investors for building a fossil fuel-free steel plant in the north of Sweden that would start production in 2024.

H2 Green Steel plans to have an annual production capacity of 5 million tonnes of green steel by 2030 that could reduce 95% of carbon dioxide emissions compared with normal steelmaking.

The new round was co-led by investors including AMF, GIC, Schaeffler and Altor. Swedbank Robur Alternative also participated in the equity raise.

Spotify founder Daniel Ek, main Kinnevik owner Cristina Stenbeck and Vargas Holding, co-founder of battery maker Northvolt, were among early investors of H2 Green Steel.

H2 Green Steel has pre-sold about 60% of its initial volumes to customers in sectors such as steel service centers, pipe and tube, passenger vehicles and heavy commercial vehicles, the company said in a statement.

(Reporting by Supantha Mukherjee in Stockholm; Editing by Josie Kao)