The financing, which includes a number of leading European financial institutions, will allow the company to build its hydrogen-powered green steel plant in Boden, northern Sweden.

H2 Green Steel has received conditional commitments for senior debt of 3.3 billion euros from state-owned companyS vensk Expor kredit and commercial banks BNP Paribas, ING, UniCredit, Societe Generale and KfW IPEX-Bank.

The European Investment Bank has received board approval for €750 million of senior debt funding. The senior debt is covered by €1.5 billion worth of credit guarantees from export credit agencies including Euler Hermes and €1 billion of green credit guarantees from the Swedish National Debt Office. In addition, H2 Green Steel have signed a conditional commitment letter with a leading Nordic infrastructure fund for €500 million of junior debt funding.

H2 Green Steel will finance the construction of its hydrogen-powered green steel plant in northern Sweden through a combination of equity and debt financing. The site is scheduled to start production in 2025 or 2026.

The support proves that H2 Green Steel has a strong business case and that now is the time to decarbonise the steel industry

“The support from some of Europe’s leading banks and export credit agencies will enable the construction of a first-of-its-kind green steel plant in northern Sweden. It does not only prove that H2 Green Steel has a strong business case, but also that it is possible to create a better, cleaner future together and that now is the time to decarbonise the steel industry,” says Carl-Erik Lagercrantz, Vice Chairman of H2 Green Steel.