H2 Green Steel – a Swedish green hydrogen and green steel producer, announced on Monday it had secured support for 3.5 billion euros ($3.45 billion) in a combination of debt and equity financing to build a hydrogen-powered steel plant in Northern Sweden.
According to the company, it had received conditional commitments for senior debt of 3.3 billion euros ($3.31 bn) from state-owned AB Svensk Exportkredit and five commercial banks, while some other lenders had issued letters of intent for credit guarantees.
The European Investment Bank has received board approval for 750 million euros ($752 million) of senior debt funding for the project.
H2 Green Steel is aiming to build a steel production process that minimizes negative environmental impact, pollution, and waste. It will replace coal in steel production with green hydrogen and plans to use the green fuel to decarbonize other heavy industries.
H2 Green Steel targets 5 million tonnes of green steel in annual production by 2030 that could reduce 95% of carbon dioxide emissions compared with normal steelmaking.
The company is an example for an industrial producer that has sustainability and decarbonization at its core – values that are essential for the world to reduce emissions quickly.