Stegra has secured €1.4 billion in new financing, giving the Swedish company strong financial support to continue building its green steel plant in Boden, northern Sweden. The funding marks an important step for the company as it works to complete one of Europe’s largest green steel projects.
The announcement comes at a time when many clean industrial projects in Europe are facing rising costs and financing challenges. By successfully closing this financing round, Stegra has strengthened its position and maintained the backing of both investors and lenders.
Consortium Led by Wallenberg Investments
The financing round was led by a consortium headed by Wallenberg Investments. Existing investors IMAS and Temasek participated in the round, while Bolero and SEB-Stiftelsen joined as new investors.
Several current shareholders also increased their investments, including Altor, Hy24, Just Climate, AMF, AP2, Climate Infrastructure Fund, Kallskär, Kobe Steel, Lingotto Innovation, Scania, Schaeffler, Security Trading, Stena Metall Finans, and Swedbank Robur.
A group of the company’s second-lien lenders, led by AIP Management, also became equity investors.
Funds Will Support Construction and Commissioning
Stegra said the new capital will mainly be used to complete the construction and commissioning of the Boden plant. The company added that the financing strengthens its equity position and provides a more resilient financial structure as work continues.
Construction activity at the site is increasing, although the overall project timeline remains under review.
Producing Steel with Green Hydrogen
Stegra is developing a steelmaking process that replaces coal with green hydrogen produced from renewable electricity. The goal is to significantly reduce carbon emissions compared with traditional steel production methods.
The company, previously known as H2 Green Steel, rebranded as Stegra earlier this year and continues to focus on producing near-zero-emissions steel for industrial customers.
Leadership Highlights Investor Confidence
Chief Executive Officer Henrik Henriksson said the completed financing shows strong confidence from both existing and new investors as well as lenders. He stated that the company remains focused on bringing near-zero-emissions steel to the market and completing the Boden facility.
Håkan Buskhe described the project as an important investment for Sweden’s industrial competitiveness and Europe’s long-term security of supply.
Stegra also announced board changes following the financing. Former Volvo Group CEO Leif Johansson will become Chair of the Board, while company co-founder Harald Mix will no longer serve as a board member.
A Significant Step for Europe’s Green Industry
The successful financing stands out as European manufacturers seek cleaner production methods and more secure industrial supply chains. With fresh capital and continued lender support, Stegra has strengthened its ability to move the Boden project toward completion.
As construction progresses, the company aims to play a major role in the transition to lower-carbon steel production and support Europe’s broader climate and industrial goals.
