This conversation with Kajsa Ryttberg-Wallgren, EVP of Global Growth at H2 Green Steel, explores the milestones achieved by H2 Green Steel in securing funding for its first-of-a-kind Boden plant. The discussion covers topics, such as early financing, partnerships and value chain support, securing site and power allocation, team structure and growth, joint ventures, and the massive fundraising round. The conversation also delves into the debt structure and equipment financing, working with different types of investors, and the key milestones that enabled H2 Green Steel to raise €1.5 billion in equity financing and sign definitive agreements for €4.2 billion in debt. The discussion covers topics such as securing debt from export credit agencies, early consideration of project finance, replicating financing structures for future projects, power purchase agreements and energy sourcing, securing iron procurement, carbon credits as part of the revenue stack, the financing structure for future projects, involvement of strategic partners, scaling the team and organizational structure, challenges in recruiting specialized talent, milestones and de-risking for financing, location as a key factor in bankability, and the importance of timing in success.
Takeaways
Early consideration of project finance and learning from similar projects can help structure financing, from the beginning.
The financing structure can be replicated for future projects, but location-specific factors must be considered.
Carbon credits can be an important revenue stream for projects with low or no CO2 emissions.
The team and organizational structure must evolve as the company scales and moves into different project phases.
Recruiting specialized talent from around the world is crucial for success in capital-intensive industries.
Milestones and de-risking are important for attracting financing partners.
Location plays a significant role in the bankability of projects, considering factors such as renewable energy availability and cost.
Timing is a crucial element of success, as market conditions and regulatory frameworks can impact project feasibility.
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Guest: https://www.linkedin.com/in/kajsaryttbergwallgren/
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Host: https://www.linkedin.com/in/samiaqader/