Swedish steel venture H2 Green Steel it had secured support for 3.5 billion euros ($3.45 billion) in debt financing to build a hydrogen-powered steel plant in Northern Sweden.
The company said it had received conditional commitments for senior debt of 3.3 billion euros from state-owned AB Svensk Exportkredit and five commercial banks, while some other lenders had issued letters of intent for credit guarantees. "The commitment letters and approvals remain subject inter alia to completion of final due diligence and documentation," the company said in a statement.
The construction of the plant in the town of Boden will be financed through a combination of debt and equity. The site is scheduled to start production at the end of 2025.
The company's customers are all but one located in Europe and have not been affected by the ongoing political turmoil, Chief Executive Henrik Henriksson . H2 Green Steel targets 5 million tonnes in annual production by 2030 that could reduce 95% of carbon dioxide emissions compared with normal steelmaking.
