Green credit guarantee for a loan to H2 Green Steel

News 22 December 2023

The Swedish National Debt Office has decided to issue a credit guarantee for a loan to H2 Green Steel for financing a new green steel production plant in Boden, Sweden. The guarantee is provided within the framework of the guarantee scheme for large green industrial investments.

The loan constitutes partial financing for H2 Green Steel’s new plant in Boden. The loan being guaranteed amounts to a total of EUR 1.2 billion and will be issued by a consortium of banks and credit institutions. The Debt Office’s guarantee covers 80 per cent of the loan amount and is provided in accordance with market pricing.

The plant will produce green steel, contributing to a reduction in CO2 emissions of up to 95 per cent compared with traditional steelmaking. Green steel production is an important component of the work to achieve climate objectives. The Debt Office assesses that H2 Green Steel’s investment in the production of green steel meets the criteria for a green credit guarantee. 

About green credit guarantees

In order to be eligible for a green credit guarantee from the central government, the investment in question must contribute to Sweden’s environmental and climate policy goals. The Debt Office conducts its assessment on the basis of the criteria set forth in Ordinance (2021:524) on state credit guarantees for green investments.

Read more about the Debt Office’s mandate to provide green state credit guarantees: 
Credit guarantees for green investments