HELSINKI, June 26, 2024 — Blastr Green Steel (Blastr) has successfully executed a financing round with strategic partners, advancing the development of a European integrated ultra-low CO2 steel value chain with its flagship steel plant in Finland.
Global steel industry leader Cargill Metals, Germany-based steel trader INTERFER Group, Tesi, Finland’s state-owned venture capital investment company, and Blastr’s founder Vanir Green Industries participated in the equity financing round. The proceeds will be used to progress development planning for the steel plant in Inkoo, Finland, and a facility in Northern Europe designed for producing 6 million metric tonnes (Mt) of high-quality low-carbon DR pellets feedstock annually. The funding will also support organisational ramp-up aligned with commercial and supply chain activities.
“This successful early financing round represents a significant step towards realising Blastr’s multi-billion Euro investment program for production of pellets, sponge iron and steel at global scale,” said Mark Bula, the CEO of Blastr Green Steel. “Together with our partners, we are set to materially contribute to transforming how the world’s most important engineering and construction material – steel – is made. The confidence from our development partners is a validation of Blastr’s unique competitive advantages and position within the global steel industry.”
Lee Kirk, Managing Director, Cargill Metals, said, “It is increasingly urgent that the global steel industry delivers on its decarbonisation commitments. We are therefore very pleased with the strong momentum and progress made by the new Blastr leadership towards the realisation of an ultra-low CO2 steel value chain in Europe as part of developing a more sustainable ferrous industry.”
Gerold Lorenz, CEO of INTERFER Edelstahl Group, added, “Our customers are increasingly focusing on low-carbon steel products, and we are committed to bringing green steel solutions to the market at scale. Our investment in Blastr reflects our strategy of establishing stable and trusting partnerships with suppliers and manufacturers worldwide.”
Esa Koponen, Investment Director at Tesi, commented, “Blastr Green Steel fully aligns with Tesi’s industrial scale-up strategy aimed at promoting economic growth, innovation and investments. We look forward to providing our long-term support to the project which will create significant economic activity in Finland by leveraging our rapidly growing local renewable energy industry to offer new competitive solutions for reducing global emissions and drive the clean and green transition.”
As part of the next development phase, Blastr is establishing framework agreements covering the entire green steel value chain from the supply of steelmaking technology and working with Cargill Metals to finalise the supply of raw materials and feedstock for pellet production, to sales of surplus pellets, HBI (hot briquetted iron) and low-cost, ultra-low CO2 steel products utilising greener logistics. These agreements will form the basis for construction financing discussions with strategic and financial partners with the ambition of making final investment decision for both the pellet plant and the steel plant by early 2026 and commencing production before 2030.
Blastr is creating a low-carbon mine-to-gate steel value chain with 90% lower C0₂ emissions than conventional steelmaking by using hydrogen instead of coal in the iron production process and feedstock made with carbon-free energy. This mine-to-gate model enables a differentiated and profitable business model with a low carbon footprint.
Completion of the partner financing round is conditional upon the approval by the general meeting of Blastr 28 June 2024. SEB acted as financial advisor to Blastr and BAHR was legal advisor. Capient AS acted as strategic capital markets advisor.
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