Demeter has announced it has invested in H2 Green Steel’s hydrogen-powered green steel plant in Sweden.
The investment will enable the Swedish company to ramp up the development of the green steel plant alongside constructing Europe’s largest hydrogen plant.
The funding will be supported via the Climate Infrastructure Fund (art 9 SFDR), with Demeter joining multiple industrial investors from the automotive and steel processing industries, as well as financial investor Hy24.
Philippe Detours, Managing Partner at Demeter, commented: “Demeter is thrilled to support H2 Green Steel in the financing of this first green steel production unit as well as the partnership formed with Hy24 for this end.
“This investment allows us to reaffirm Demeter’s commitment to the decarbonisation of the industry and the ambition to strengthen our footprint in Europe.”
Over €6bn in investments
Founded in 2020, H2 Green Steel aims to decarbonise the steel industry through leveraging green hydrogen.
In January, the company announced a major fundraising operation of €1.8bn in equity and €4bn in debt.
Overall, H2 Green Steel has generated around €6.5bn in investments.
Decarbonising steel production
Located in Boden, Sweden, the green steel plant began construction in 2022, and operations are scheduled to start in 2026.
The plant will reduce CO2 emissions by up to 95% compared to traditional blast furnace steel production.
This is achieved by using green hydrogen, produced on-site with one of the world’s largest electrolysers powered by renewable energy instead of coal.
Otto Gernandt, CFO of H2 Green Steel, added: “Demeter shares our sense of urgency and commitment to accelerate climate action.
“Their investment is an integral part of what has allowed us to go from vision to full execution of the world’s first large-scale green steel plant. We look forward to a long partnership ahead.”
Advanced technology and digitalisation, combined with a unique approach to circularity and recycling, will make this steel plant the first of its kind in Europe.
