Sweden-based Stegra has announced the start of a new financing round to support the construction of the world’s first large-scale green steel plant in Boden, Sweden, following strong commitments from existing investors.
According to Henrik Henriksson, CEO of the company, the renewed backing from founding and lead investors reinforces confidence in Stegra’s business model. He stated that the company holds a strong order book, a competitive cost structure, and proven execution capabilities.
The proceeds from this round of financing are expected to account for up to 15 percent of Stegra’s total project funding, combining new equity, debt instruments, outsourcing arrangements, and selected strategic partnerships. In addition to equity commitments, Stegra is in advanced discussions with outsourcing partners.
Mr. Henriksson stated that the project has surpassed 60 percent completion, with a clear plan and timeline extended by three months to incorporate additional scope. The new financing will strengthen project delivery and provide a financial buffer.
The raised funds will be used to:
- Cover the expanded project scope linked to insourcing of railway and port infrastructure, now designed, built and owned by Stegra.
- Offset higher material, construction and installation costs.
- Compensate for state grants not fulfilled despite prior EU Commission approval.
- Maintain prudent liquidity and stability throughout the remaining construction period.
Once completed, the Boden green steel project will position Stegra as a leading player in Europe’s decarbonized steel landscape, enabling large-scale production of fossil-free steel with integrated logistics and renewable power infrastructure.