Home » Cordata Marcegaglia and Exor for the first green steel mill in Europe

Cordata Marcegaglia and Exor for the first green steel mill in Europe

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The Marcegaglia group and Exor are also among the companies that participated in the $ 105 million Series A financing round in support of H2 Green steel, a Swedish start-up that aims to put into operation, in 2024, a fully powered steel mill green hydrogen.
The goal is to produce up to 5 million tons of steel – roughly the same size as the output of the former Ilva, once the plants are fully up and running – by 2030.
“The Marcegaglia Group – reads a note – will participate in the initiative not only as a financial partner, but also as a strategic industrial partner in both the production and commercial fields”.

Big in campo

Among the underwriters, in addition to the two Italian subjects, also big automotive companies such as Mercedes-Benz and Scania (the CEO of H2gs, Henrik Henriksson, comes from the big Swedish commercial vehicle), the Ikea foundation, Vargas holding, but also capital family members like the Wallenbergs and Maersks.
H2gs aims to raise another 2.5 billion in a Series B in the next twelve months: of these 1.8 billion should come from debt and the remaining resources from equity (Morgan Stanley, Societe Generale and KfW IPEX-Bank are the financial advisors of the operation).

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Plants in operation in 2024

The H2gs steel plants will start operating as early as 2024, anticipating the ecological compatibility objectives set by the European Union for 2050, and will initially produce 2.5 million tons of green steel per year, with the aim of reaching 5 million, as mentioned, as early as 2030.

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H2gs – which also includes Daniel Ek, CEO of Spotify, together with entrepreneur Cristina Stenbek, at the helm of Investment Ab Kinnevik and already at the top of Zalando, among the shareholders – will power its plant with green hydrogen using only energy sources local renewables (such as wind and hydroelectricity) and quality iron ore, of which the Swedish cluster of Boden, world leader in metallurgy and steel, is particularly rich.

Solutions for decarbonization

According to analysts, the recent choices aimed at decarbonising production cycles promoted by the European Commission will force many integral cycles in the future to seek less impactful production solutions. For this reason, the objective of producing “green” steel has long been on the agenda of many European players in the steel sector, such as the global leader ArcelorMittal and the Austrian Voestalpine; but the Swedish initiative undoubtedly seems to have started off on the right foot.

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