Climate Insider Brief:
- Blastr’s second financing round added three Finnish investors alongside existing backers, strengthening its push for ultra-low CO₂ steel.
- The funds will support Blastr’s Inkoo steel plant and a pellet plant producing 6 Mt of DR feedstock, cutting CO₂ emissions by 90% with hydrogen.
- Blastr submitted its EIA for the Inkoo plant in late 2024 and plans to seek permits in 2025, advancing its role in Europe’s green steel sector.
Blastr Green Steel (Blastr) has successfully closed its second strategic partner financing round, reinforcing its ambition to establish a European integrated ultra-low CO₂ steel value chain. This funding milestone supports the development of Blastr’s flagship steel plant in Inkoo, Finland, and the expansion of its green steel initiatives.
The latest financing round saw participation from three of Blastr’s founding investors and three new investors based in Finland, all aligned in their commitment to sustainable growth. The new investors include:
- Aurora Infrastructure, a Nordic company specializing in asset financing and the development of electricity networks.
- Onvest Oy, a family-owned firm committed to enabling sustainable industrial growth.
- Security Trading Oy, an investment company focused on sustainability and resilience.
Blastr’s existing investors—Cargill, Finland’s state-owned venture capital firm Tesi, and Blastr’s founder Vanir Green Industries—also contributed additional capital, increasing their ownership stakes.
Strengthening Finland’s Green Steel Industry
With this funding secured, Blastr is moving forward with its integrated steel value chain, which includes the development of its steel plant in Inkoo and the construction of a pellet plant capable of producing 6 million metric tonnes (Mt) of direct reduction (DR) pellet feedstock annually. Blastr’s innovative approach replaces coal with hydrogen in the iron production process, cutting CO₂ emissions by 90% compared to conventional steelmaking.
“Blastr warmly welcomes the new partners who all share our vision for a more sustainable steel industry, and the strong continued commitment from our founding investors,” said Mark Bula, CEO of Blastr Green Steel. “The successful closing of this second partner round is a real credit to our team and partners, demonstrating the viability of our business model and mine-to-gate value proposition.”
Aurora Infrastructure’s CEO Robin Lindahl highlighted the project’s significance for Finland:
“Blastr’s green steel project is a significant industrial investment for Finland, exactly what the country needs to accelerate its transition to a sustainable future. This project not only leverages Finland’s renewable energy resources but also creates new jobs and economic opportunities by advancing value-added processing locally. The Inkoo site, with its existing infrastructure and strategic location, is ideally suited for such an initiative. Projects like this are what we want to support at Aurora Infrastructure, and we have a proven track record of serving some of the largest industrial sites in Finland. We want to be a part of building Finland’s future strengths and the establishment of a robust hydrogen economy, meeting the growing demand for green steel.”
Echoing this sentiment, Maria Toivanen, CEO of Onvest Oy, emphasized Onvest’s role in supporting Finland’s transition to green steel:
“As a family company, we want to be involved in the arrival of green steel in Finland. We want to support this great green transition project, as we own one of the biggest steel service companies in Finland.”
Regulatory Milestones and Future Plans
Blastr has already taken key regulatory steps, submitting its Environmental Impact Assessment (EIA) report for the Inkoo plant in late 2024. The report concluded that the facility can be developed in an environmentally sustainable manner. Based on these findings, Blastr plans to apply for environmental permits in 2025.
Blastr’s integrated mine-to-gate approach is expected to make a substantial impact on Europe’s decarbonization efforts, offering a scalable model for producing ultra-low CO₂ steel using carbon-free energy.
Looking Ahead
As one of the largest industrial startups in the Nordic region, Blastr Green Steel is positioning itself at the forefront of Europe’s green steel transformation. With the backing of strategic investors and a clear pathway to environmental compliance, the company is set to play a crucial role in shaping the future of sustainable steel production.
Source: Fuel Cells Works
Featured Image: Credit: Blastr Green Steel
