H2 Green Steel’s €3.5 billion loan is backed by the European Investment Bank and the Swedish National Board. The loan will finance its hydrogen-poweredgreen steel plant in northern Sweden.
European support
H2 Green Steel is supported by European institutions. Indeed, the institutions are supporting the hydrogen-fueled green steel plant with debt and credit guarantees. The European Investment Bank receives the approval of the Board of Directors for a €750 million senior debt financing.
In addition, the Swedish National Debt Office issues a letter of intent guaranteeing the €1 billion green credit. Henrik Henriksson, CEO of H2 Green Steel says:
“These strong commitments to our debt financing show how far we have come in a very short time. We are impressed with the collaborative approach of these institutions and the leadership they are showing in financing the transition.”
In addition, the company signed conditional commitment letters for €3.3 billion of senior debt with several commercial banks.
Reducing carbon emissions
H2 Green Steel will finance the construction of its hydrogen-powered green steel plant through this financing combination. A major milestone made possible by a due diligence process launched in Q4 2021. According to Henrik Henriksson, these commitments underline a willingness to reduce carbon emissions in line with the 2015 agreements.
CEO Henrik Henriksson states:
“The support from the European Investment Bank, the Swedish National Debt Office and some of the world’s leading export credit agencies and banks not only confirms our business case and debt capacity, it also underscores the willingness to support initiatives that will help achieve the goals of the Paris Agreement.”
Moreover, this support shows a technical and economic recognition of the green steel plant. Thus, large Nordic investors also participate in the credit facilities up to €500,000.
