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TLDR:
- Demeter has invested in H2 Green Steel to support the construction of a green steel plant in Sweden.
- H2 Green Steel aims to produce steel with 95% lower emissions than traditional methods by using renewable energy sources.
Decarbonized steel startup H2 Green Steel has received an investment from European venture capital investor Demeter, which will fund the construction of the company’s flagship green steel plant in Boden, Sweden. This plant is expected to produce steel with significantly lower emissions compared to traditional blast furnace technology, addressing the environmental impact of the steelmaking industry.
Founded in 2020, H2 Green Steel is incorporating a giga-scale green hydrogen plant into its steel production facility to utilize hydrogen produced using green power. By utilizing renewable energy sources for both hydrogen production and manufacturing processes, the company aims to reduce CO2 emissions typically associated with steel production. The plant is set to begin operations in 2026 and is projected to produce five million tons of green steel annually by 2030.
The investment from Demeter, in collaboration with investment management firm Hy24, underscores a commitment to accelerating climate action and decarbonizing industries. The substantial funding raised by H2 Green Steel, including equity and debt, reflects growing investor interest in sustainable and environmentally friendly solutions to traditional manufacturing processes.
Otto Gernandt, CFO of H2 Green Steel, expressed gratitude for Demeter’s support, highlighting the shared dedication to climate action. Philippe Detours, Managing Partner at Demeter, emphasized the importance of investing in projects that contribute to decarbonization efforts and strengthen Europe’s sustainable footprint.
This investment in H2 Green Steel signals a significant step towards promoting sustainable steel production and reducing carbon emissions in a critical sector of the global economy. With a focus on integrating renewable energy sources and innovative technology, H2 Green Steel aims to set a new standard for green steel manufacturing, showcasing the potential for environmentally conscious solutions in the industry.
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