H2 Green Steel has secured a significant amount of new funding, totaling EUR 4.75 billion (USD 5.17 billion). This significant investment will be utilized to enhance the progress of the world's inaugural large-scale green steel plant situated in northern Sweden. The overall funding comprises definitive debt financing agreements amounting to EUR 4.2 billion in project financing, accompanied by a EUR 300 million augmentation in a previously disclosed equity raise. Moreover, H2 Green Steel has been granted a considerable EUR 250 million give from the EU Development Support.

With these financial arrangements, H2 Green Steel has now accumulated a total of nearly EUR 6.5 billion to support the development of this groundbreaking project. The distinctive feature of this facility lies in the substitution of coal in the production process with on-site generated green hydrogen. Construction activities at the Boden site are already in progress, marking significant strides towards the realization of this ambitious project.

Key components of the steel plant, including supply contracts for iron and steel equipment, have been firmly established. Additionally, a considerable portion of the required electricity has secured supply contracts. In the realm of hydrogen supply, H2 Green Steel took a significant step forward last year by entering into a contract with Thyssenkrupp Nucera AG & Co KGaA. This agreement secures electrolyser production capacity of 700 MW, specifically reserved for the Boden plant.

The infusion of EUR 4.75 billion in fresh financing not only underscores the financial viability of H2 Green Steel's green steel initiative but also positions the company at the forefront of sustainable steel production. The tangible commitments through debt financing, equity raise, and the EU Innovation Fund grant manifest a collective confidence in the potential of this groundbreaking project.

As construction progresses at the Boden site, the successful attainment of funds positions H2 Green Steel to achieve its objectives in revolutionizing the steel industry. The replacement of coal with on-site generated green hydrogen not only addresses environmental concerns but also aligns with global efforts to transition towards greener, more sustainable industrial practices.

In conclusion, H2 Green Steel's securing of EUR 4.75 billion in financing marks a significant milestone in the journey towards establishing the world's first large-scale green steel plant. The integration of green hydrogen and green iron production, coupled with solid financial backing, positions H2 Green Steel as a trailblazer in the realm of sustainable steel manufacturing, contributing to the broader global push for environmentally conscious industrial practices.