Swedish steel venture H2 Green Steel has secured support for €3.5 billion ($3.45 billion) in debt financing to build a hydrogen-powered steel plant in Northern Sweden.
The company announced it had received conditional commitments for senior debt of €3.3 billion 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."Written statement by H2 Green Steel
"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 commented in a report by Reuters.