H2 Green Steel receives €3.5 billion
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 institutions intend to support the company and its hydrogen-powered green steel plant in Northern Sweden through debt and credit guarantees.
The debt financing support consists of the following:
H2 Green Steel has executed conditional commitment letters for €3.3 billion in senior debt with AB Svensk Exportkredit (SEK) and the 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 for the H2 Green Steel project.
Leading export credit agencies, including Euler Hermes, have issued letters of intent to provide export credit-linked guarantees of €1.5 billion of H2 Green Steel’s intended senior debt.
The Swedish National Debt Office has issued a letter of intent to provide a green credit guarantee of €1 billion of H2 Green Steel’s senior debt.
H2 Green Steel has executed a conditional commitment letter with a leading infrastructure fund comprising large Nordic investors in connection with their lead participation in a circa €500 million junior debt facility.
"These strong commitments to our debt financing show how far we have come on our journey, in a very short time. We are impressed by the collaborative approach of these institutions and the leadership they are displaying in financing the transition. The support from the European Investment Bank, Swedish National Debt Office and some of the world’s leading export credit agencies and banks, not only underlines our business case and debt carrying capacity, but also highlights the willingness to support initiatives that will help fulfill the target of the Paris agreement,” says Henrik Henriksson, H2 Green Steel’s CEO.
H2 Green Steel´s new fossil-fuel free steel plant will be a fully integrated, digitalized and automated greenfield steel plant in Boden. There it has access to renewable electricity from water power and wind power. In nearby Luleå, the Technical University and Swedens largest bulk goods harbour, are key factors for the plans.
