Sweden’s H2 Green Steel plans to raise $1.65 billion for Boden plant

(Reuters) -Swedish steel producer H2 Green Steel is seeking to raise more than 1.5 billion euros ($1.65 billion) of equity funding for its iron, steel and hydrogen plant in Boden, the company said on Monday.

H2 Green Steel, launched in 2021, is currently developing its direct reduced iron (DRI) plant in Boden, which is expected to be powered by hydrogen plants running on renewable electricity.

The company plans to start production at the end of 2025 and a ramp-up in 2026, H2 Green Steel said in a statement to Reuters.

Financial Times, who first reported on the funding, said H2 Green Steel is working with advisers at Morgan Stanley.

Morgan Stanley declined to comment.

H2 Green Steel told FT it had begun the final part of its financing strategy to raise more than 5 billion euros, including 3.5 billion in debt, the paper said.

The company targets 5 million tonnes in annual production by 2030, that could reduce 95% of carbon dioxide emissions compared with normal steelmaking.

($1 = 0.9108 euros)

(Reporting by Jahnavi Nidumolu and Yana Gaur in Bengaluru; Editing by Nivedita Bhattacharjee)