€300M Green Steel
Innovation Prize
Accelerating breakthrough technologies for carbon-neutral steel production
Total Fund Size
Active Investments
Carbon Neutral Target
Why Apply?
Capital & Resources
- ✓ Up to €50M investment per company
- ✓ Access to ArcelorMittal's global facilities
- ✓ Technical validation and pilot testing
- ✓ Co-investment from strategic partners
Market Access
- ✓ Direct path to commercialization
- ✓ Offtake agreements with major OEMs
- ✓ European and global market entry
- ✓ Regulatory and policy support
Technical Excellence
- ✓ World-class R&D collaboration
- ✓ Access to 50+ steel experts
- ✓ State-of-the-art testing facilities
- ✓ IP protection and licensing
Strategic Partnership
- ✓ Long-term strategic alignment
- ✓ Board representation rights
- ✓ Technology transfer opportunities
- ✓ Global scaling support
Investment Criteria
Technology Readiness
TRL 4-9 with clear path to scale
Carbon Impact
>50% CO2 reduction potential
Economics
Path to cost competitiveness
Scalability
Industrial-scale potential
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For Green Steel Companies
Portfolio Overview
Track investments and performance metrics
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Capital Deployed
ETS Savings
Portfolio TRL
Deal Pipeline
Discover Green Steel Technologies
Explore breakthrough innovations in sustainable steel production
H2 Green Steel
Integrated green hydrogen steel production
Boston Metal
Molten oxide electrolysis at 1600°C
Blastr Green Steel
H2-DRI with renewable power integration
H2 Green Steel
Integrated green hydrogen steel production facility in Boden, Sweden
Technology Overview
H2 Green Steel is developing the world's first large-scale fossil-free steel plant, utilizing green hydrogen produced on-site through water electrolysis powered by renewable energy. This integrated facility will produce 5 million tons of high-quality steel annually by 2030.
H2 Consumption
Energy Usage
CO2 Reduction
Production Cost
Key Success Factors
- ✅ Renewable Power: 800 MW secured through long-term power purchase agreements
- ✅ Customer Commitments: Binding offtake agreements with Mercedes, BMW, Scania
- ✅ Strategic Location: Optimal access to renewable power and iron ore resources
- ✅ Experienced Team: Leadership from SSAB, Vattenfall, and McKinsey
Investment Opportunity
ETS Impact
Potential to reduce ArcelorMittal's annual ETS costs by €240M through technology licensing and deployment at European facilities.
CBAM Advantage
Zero-carbon steel provides competitive advantage under EU Carbon Border Adjustment Mechanism starting 2026.
Physics-Based Process Validation
Mass Balance
Energy Balance
Thermodynamics
Reaction Kinetics
H2 Utilization
Product Quality
Technical Verification Summary
Independent third-party analysis confirms process viability with hydrogen consumption of 48 kg/ton steel, aligning with theoretical minimums for direct reduction. Energy requirements validated against pilot plant data from Hybrit demonstration facility.
Key Process Parameters
- • Shaft furnace pressure: 8 bar
- • H2 purity requirement: >95%
- • Residence time: 6-8 hours
- • DRI metallization: >94%
Validation Methods
- • Computational fluid dynamics
- • Pilot plant correlation
- • Laboratory scale testing
- • Industrial benchmarking
Financial Projections & Analysis
Revenue Projections
Annual revenue at full capacity (2030)
EBITDA Margin
Expected margin by 2028
Payback Period
Including green premium contracts
IRR
Projected internal rate of return
Unit Economics
Investment Structure
| Total Project CAPEX | €1.5B |
| Equity Funding (Series B) | €300M |
| Debt Financing | €800M |
| Government Grants | €400M |
| AM Investment | €50M |
Leadership Team
Henrik Henriksson
Chief Executive Officer
Former CEO of Scania (2016-2020), 25+ years in heavy industry. Led Scania's transformation to sustainable transport solutions.
Maria Persson
Chief Technology Officer
Former SSAB R&D Head, pioneered HYBRIT technology. PhD in Metallurgy from KTH, 20 years in steel innovation.
Lars Kihlström
Chief Financial Officer
Former McKinsey Partner, specialized in industrial transformation. Led €10B+ infrastructure financing projects globally.
Board of Directors
| Name | Position | Background |
|---|---|---|
| Carl-Erik Lagercrantz | Chairman | Founder of Vargas Holding |
| Harald Mix | Board Member | Former CEO Allianz Capital Partners |
| Marcelo Awad | Board Member | Former EVP Antofagasta Minerals |
| TBD | Board Observer | ArcelorMittal Representative |
Governance Structure
Board Committees
- • Audit & Risk Committee
- • Technology & Innovation Committee
- • Compensation Committee
- • ESG & Sustainability Committee
Investor Rights
- • Board representation (€50M+)
- • Monthly reporting
- • Veto rights on key decisions
- • Pro-rata participation rights
ArcelorMittal Integration Strategy
Technology Transfer Roadmap
Phase 1: Pilot (2026)
- • Dunkirk facility pilot deployment
- • 100kt/year demonstration plant
- • Technical team training
- • Process optimization
Phase 2: Scale (2027)
- • Bremen and Eisenhüttenstadt
- • 1Mt/year production capacity
- • Supply chain integration
- • Customer qualification
Phase 3: Rollout (2028-2030)
- • Full European deployment
- • 5Mt/year total capacity
- • Technology licensing
- • Global expansion
Knowledge Transfer
- • Joint R&D center in Luxembourg
- • 50 AM engineers training program
- • Process optimization collaboration
- • Digital twin technology sharing
- • Quarterly technical reviews
- • IP cross-licensing agreement
Commercial Synergies
- • Joint customer approach
- • Green steel certification program
- • Supply chain optimization
- • Shared renewable energy procurement
- • Market development initiatives
- • Co-branding opportunities
Strategic Value Creation
Technology value over 10 years
EBITDA improvement potential
Carbon neutral achievement
Risk Analysis & Mitigation
⚠️ Key Risk Factors
| Hydrogen cost volatility | High |
| Construction delays | Medium |
| Technology scale-up | Low |
| Green premium erosion | Medium |
| Renewable power access | Low |
| Regulatory changes | Low |
✓ Mitigation Strategies
- • Long-term renewable PPAs (15 years)
- • Fixed-price EPC contract with Worley
- • Binding customer offtake agreements
- • Government support secured (€400M)
- • Technology insurance coverage
- • Staged investment milestones
- • Strategic investor consortium
Risk Assessment Matrix
Proven at pilot scale
Premium dependent
Large scale project
Strong backing
Investment Committee Recommendation
Based on comprehensive risk assessment, the investment presents a favorable risk-return profile with strong mitigation strategies in place. The strategic value to ArcelorMittal's decarbonization roadmap significantly outweighs identified risks. Recommended for approval with staged investment approach.
H2 Green Steel - Confidential Documents
Due diligence materials. Access expires in 28 days.
Document Library
Process Flow Diagrams
Document Preview
Detailed process flow showing H2 production, DRI shaft furnace,
and EAF integration with material and energy balances
Document Activity
Series B Investment Round
H2 Green Steel - €300M funding round
Round Overview
Round Size: €300M Series B at €1.5B pre-money valuation
Lead Investor: Vargas Holding with €100M commitment
Target Close: Q1 2025 with rolling close option
Use of Funds: Boden facility construction, working capital, R&D
Current Investor Commitments
Investment Terms
| Security Type | Series B Preferred |
| Pre-Money Valuation | €1.5B |
| Liquidation Preference | 1x non-participating |
| Board Rights | 1 seat per €50M+ |
| Pro-rata Rights | For €25M+ investors |
| Anti-Dilution | Weighted average |
| Drag-Along Rights | 60% approval |
Join the Round
Strategic Value
ETS compliance savings: €240M annually
CBAM competitive advantage: €85/ton by 2026
Strategic Offtake Agreements
Securing long-term revenue through binding purchase commitments
Committed Purchasers
Master Offtake Agreement Terms
This binding pre-purchase agreement secures 40% of production capacity at a green premium of 20% above market price for zero-carbon steel meeting EU taxonomy requirements.
| Contract Term | Value |
|---|---|
| Base Price Formula | |
| Take-or-Pay Percentage | |
| Carbon Intensity Requirement | |
| Certification Standard | |
| Force Majeure Threshold | |
| Penalty for Non-Delivery |
Project Milestones
Revenue Security
CBAM Advantage
- No CBAM certificates required
- €85/ton advantage vs. imports
- Protected market position
Regulatory Sandbox
Simulate policy scenarios and their impact on green steel competitiveness
EU Emissions Trading System (ETS)
ActiveCarbon pricing directly impacts the cost advantage of green steel over conventional production methods.
Carbon Border Adjustment Mechanism (CBAM)
ActiveImport tariffs on high-carbon steel protect domestic green steel producers from unfair competition.
Green Public Procurement Mandate
ProposedRequiring public projects to use low-carbon steel creates guaranteed demand for green producers.
EU Green Steel Standard
ProposedMaximum carbon intensity threshold for steel to qualify as "green" under EU taxonomy.
Green Steel Investment Aid
ActiveDirect capital subsidies for green steel projects under EU Innovation Fund and national schemes.
Industrial Renewable PPA Support
ActiveContracts for Difference (CfD) and grid priority for industrial renewable energy consumers.
Competitiveness Score
Green Steel Advantage Score
Economic Impact
Policy Recommendations
Optimal Policy Mix:
• Maintain ETS > €80/tCO2
• Implement 50%+ GPP mandate
• Secure 40% investment aid
• Lock in renewable PPAs