HELSINKI, June 26,
2024 /PRNewswire/ -- 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.
For media inquiries, please contact:
media@blastr.no
+358 50 465 4767
This information was brought to you by Cision
http://news.cision.com
View original
content:https://www.prnewswire.co.uk/news-releases/blastr-green-steel-strengthens-strategic-partnerships-and-raises-development-financing-for-ultra-low-co2-steel-value-chain-302182814.html