Swedish green iron and steel manufacturer Stegra has initiated a new financing round to advance the development of the world’s first large-scale green steel plant in Boden, Sweden. This move follows robust initial support from existing investors.
Established in 2020, Stegra employs hydrogen produced from renewable energy to eliminate oxygen from iron oxide, significantly reducing carbon dioxide emissions typically associated with steel production. The plant’s energy requirements are entirely met by renewable sources.
Construction of the facility commenced in 2022, with operations slated to begin in 2026. Stegra aims to produce five million tonnes of green steel annually by 2030.
Henrik Henriksson, CEO of Stegra, stated: “Stegra has a unique position in the green steel landscape with a strong order book, a competitive cost position, and proven execution capabilities. We have progressed more than 60% of the project and have clear visibility and a detailed plan for the full runway up to completion, including a timeline extension of three months to accommodate for the additional scope. We will now continue to advance the project with the additional strength that will be provided by this new financing round.”
The latest financing round is expected to cover approximately 15% of the project’s total funding through a mix of new equity, debt, outsourcing, and strategic partnerships. The company is also in advanced discussions regarding potential outsourcing opportunities.
This financial initiative coincides with Stegra’s ongoing efforts to enhance its sustainable steel partnerships. In September 2025, the company announced two agreements with Microsoft to promote near-zero emission steel in the tech giant’s data centre operations, highlighting the increasing demand for low-carbon steel solutions.
