Stockholm-based untried steel producer, H2 Untried Steel, spoken on Thursday that it has raised 1.5B in the largest private placement in Europe this year.
The private placement was co-led by new investor Hy24, together with existing investors Altor, GIC, and Just Climate. The round moreover includes new investors Andra AP – fonden and Temasek, as well as a group of existing investors, including AMF, Cristina Stenbeck, Hitachi Energy, IMAS Foundation, Kinnevik, Schaeffler, Vargas, and Wallenberg Investments holding visitor FAM.
The Swedish visitor says it will use the funds to construct and develop the world’s first large-scale untried steel plant in Boden, Sweden.
H2 Untried Steel says the upcoming plant will unhook steel with up to 95 percent less CO2 emissions than steel produced with traditional wham furnace technology.
This is made possible by replacing coal in the production process with hydrogen, produced on-site with Europe’s largest electrolyser, using electricity from renewable sources.
The utterance comes eleven months without raising 3.5B in debt financing from a leading European financial institution. Since its launch in 2021, H2 Untried Steel has raised increasingly than 1.8B in probity in three financing rounds.
“The calibre of investors that are valuables us is impressive. Some of the most professional institutions, investors, and industrial companies globally are part of this round and we are proud that they all share our transferral to sustainability as their true north. 1.5B is the largest private placement in Europe this year and the want to invest in us proves both our solid merchantry specimen and the market demand for untried steel,” says Henrik Henriksson, CEO of H2 Untried Steel.
H2 Untried Steel: Building the world’s first untried steel plant
Founded in 2020 by Vargas Holding, who co-founded shower maker Northvolt, H2 Untried Steel produces untried steel in a fully integrated production process using end-to-end digitalisation, electricity from fossil-free sources, and untried hydrogen instead of coal.
After launching in February 2021 and raising Series A funding in May, the visitor claims to have obtained a permissibility permit for its operations in Boden at a record pace, securing a 14 TWh renewable electricity try-on and starting groundwork and construction.
The company’s customers come from diverse industries, including steel service centres, pipe and tube, passenger vehicles and heavy commercial vehicles, whitegoods, and construction products.
“This marks the start of industrial-scale decarbonisation of vital materials production. The sector will require substantial investments over the coming decades to enable our customers to produce untried end products and, thereby meet their climate targets. We hope this financing will contribute towards progressive the much needed, wholesale participation of wanted markets in the transformation of hard-to-abate industries,” says Otto Gernandt, CFO of H2 Untried Steel.
The investor
Hy24 is a joint venture between FiveT Hydrogen, the wipe hydrogen-enabling investment partner, and Ardian, a private investment house.
“H2 Untried Steel Boden is the most wide large-scale, untried industrial project in the world. It is a trailblazer in decarbonisation of hard-to-abate industrial sectors like steel. The investment by Hy24’s wipe hydrogen infrastructure fund will support H2 Untried Steel’s yearing to materially reshape steel markets, providing a untried volitional to its off-takers and partners. This is part of Hy24’s transferral to help industry get to net zero,” says Pierre-Etienne Franc, CEO of Hy24.