Demeter invests in H2 Green Steel, the world’s first integrated large-scale green steel plant.
Demeter, via the Climate Infrastructure Fund (art 9 SFDR), invests in the Swedish company H2 Green Steel. Demeter joins a group of major financial investors amongst them Hy24 as well as several industrial investors from the automotive and steel processing industries. This financing is dedicated to the construction of the world’s first integrated, large-scale green steel plant with Europe’s largest hydrogen plant, currently under construction.
The Climate Infrastructure Fund is carrying out this operation in association with Hy24 through its dedicated investment vehicle.
H2 Green Steel was founded in 2020 with the ambition of accelerating the decarbonisation of the steel industry, using green hydrogen. The company announced a significant fundraising operation of about €1.8 billion in equity and €4 billion in debt in January. In total funding raised by H2 Green Steel amounts to about €6.5 billion.
The funds raised will finance the construction of H2 Green Steel’s large-scale green steel plant in Boden (north of Sweden). The construction works are ongoing since the summer 2022 and the start of operations is planned during 2026.
The plant will allow CO2 emissions to be reduced by up to 95% compared to steel produced with traditional blast furnace technology. This is made possible by replacing coal in the production process with green hydrogen, produced on-site with one of the world’s largest electrolysers under construction, using electricity from renewable sources. Next-generation technology and digitalisation, together with an unrivalled approach to both circularity and recycling, will make this steel plant the first of its kind in Europe.
Philippe Detours, Managing Partner at Demeter:
Demeter is thrilled to support H2 Green Steel in the financing of this first green steel production unit as well as of 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”.
Pierre-Etienne Franc, co-founder and CEO of Hy24:
We are delighted to have facilitated Demeter’s investment, making them the second French player to support H2 Green Steel and the construction of Europe’s first integrated large-scale green steel plant.
“This project represents a significant step towards decarbonizing the steel industry in Europe. We are proud to be part of this momentum, confirming our role as a catalyst in the hydrogen ecosystem
Otto Gernandt, CFO, H2 Green Steel:
Demeter shares our sense of urgency and commitment to accelerate climate action.
“Their investment is an integral part in 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.” For this transaction, the Climate Infrastructure Fund was advised by Willkie Far Gallagher (Amir Jahanguiri, Antoine Bouzanquet, Grégoire Finance).
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Demeter invests in H2 Green Steel, the world’s first integrated large-scale green steel plant. source
