In September this year, H2 Green Steel announced that it had secured EUR 1.5 billion (USD 1.6 billion) in equity financing to finance Europe’s first green steel plant. Since launch in 2021, H2 Green Steel has raised more than EUR 1.8 billion (USD 1.9 billion) of equity in three financing rounds. The company closed its series A equity round of EUR 86 million (USD 92 million) in May 2021 and announced the close of its series B1 round of EUR 260 million (USD 278 million) in October 2022. Morgan Stanley advised the company on the series B1 and latest series B2 rounds for this private placement.
H2 Green Steel aims to be the first industrial-scale end-to-end green steel producer and, on completion, claims its green-hydrogen-powered Boden plant will achieve CO2 emissions reductions of around 95% compared to conventional European producers, yielding the greenest steel in the world. The transaction forms part of Morgan Stanley’s pledge to mobilise at least USD 750 billion for low-carbon solutions by 2030.
Read more on Morgan Stanley’s net-zero targets here.
This case study was originally published in the Net-Zero Banking Alliance 2023 Progress Update (December 2023).
Disclaimer: NZBA shares case studies to promote member banks’ awareness of new approaches, tools, products, services, and transactions related to financing the transition to net zero. Featuring a case study naming a particular bank does not represent an endorsement of all actions from that bank.