As per ESG Today, the facility could make steel with a 95% lower carbon footprint compared to the same metal being developed with traditional blast furnace technologies. EU's Innovation Fund offered 250 million euros for the project, with 300 million being in equity financing and 4.2 billion being project debt.

Steelmaking is one of the most polluting industries in the world, accounting for 7-9% of the world's total carbon footprint.

Global automotive supplier KIRCHHOFF Automotive recently became one of H2 Green Steel's customers, after announcing a seven-year agreement with the Swedish steelmaker on the supply of sustainable steel worth 130 million euros, which the supplier plans to use in order to cut supply chain emissions and to achieve its sustainability-related goals.

At the same time, German sports car manufacturer Porsche is one of H2 Green Steel's customers in the automotive industry that announced a deal with Swedish sustainable steel manufacturer back in November for annual deliveries of green steel amounting to 35.000 tons.

Porsche officials stated back in 2021 that the company aims to become carbon neutral by 2030 and it tried reducing the use of steel in favor of aluminum for lighter materials. Still, engineers concluded that steel is crucial for the overall structure of the vehicles and can't be completely replaced.

The new announcement brings H2 Green Steel's total funding to 6.5 billion euros.