Swedish Green Steel Pioneer Stegra Accelerates Sustainable Growth with $1.1 Billion Financing Drive
Stockholm – Swedish green steel company Stegra Ltd is taking another major step toward revolutionizing the global steel industry, announcing plans to raise an additional €975 million ($1.1 billion) in financing to strengthen its operations and ensure the timely completion of Europe’s first large-scale greenfield steel mill in 50 years.
The project, located in Boden, northern Sweden, marks a cornerstone in Europe’s green industrial transformation and a powerful symbol of how innovation and sustainability can coexist in heavy manufacturing.
Formerly known as H2 Green Steel, Stegra has already secured €6.5 billion in funding for its state-of-the-art steel plant, which is currently under construction. The facility aims to produce high-quality steel using renewable hydrogen rather than coal — a groundbreaking shift that could eliminate up to 95% of CO₂ emissions typically generated in traditional steelmaking processes.
The new funding round, announced on Monday, will help Stegra address rising project costs and strengthen its financial foundation. According to CEO Henrik Henriksson, the financing will also replace certain state grants that were initially expected but not received.
“We already have initial equity commitments from both founders and lead investors,” Henriksson said, expressing confidence that investor support for the company’s sustainable mission remains strong.
This new injection of capital will allow Stegra to expand its technological capabilities, enhance infrastructure, and accelerate its mission of creating carbon-free steel for the global market.
A spokesperson for the company confirmed that the financing will combine equity, debt, and strategic partnerships, ensuring a balanced and resilient financial structure. “We expect that this will carry us through the completion of the factory and the scaling up of volumes,” she said.
The Boden plant stands at the heart of Sweden’s vision to become a leader in the green transition. With its abundant supply of renewable electricity from hydropower and wind energy, northern Sweden offers the perfect environment for producing green hydrogen — the clean fuel that powers Stegra’s innovative production process.
By replacing coal with hydrogen, the company is pioneering a new model for sustainable steelmaking that could dramatically reduce the industry’s carbon footprint.
The significance of Stegra’s work extends beyond Sweden. As the global steel sector contributes nearly 8% of global CO₂ emissions, the company’s hydrogen-based production model offers a scalable solution for industries worldwide looking to decarbonize without sacrificing economic growth or industrial competitiveness.
Despite recent challenges faced by Europe’s broader green tech sector — including the bankruptcy of some battery manufacturers like Northvolt — Stegra remains a beacon of resilience. Its progress underscores that the future of heavy industry lies in innovation, renewable energy, and long-term sustainability.
Experts say that Stegra’s success could set a precedent for how hard-to-electrify industries, such as steelmaking and long-distance transportation, can embrace cleaner technologies.
The company’s advancements have already attracted global attention, with several international investors viewing it as a model for responsible industrial transformation.
The upcoming financing round is expected to not only secure Stegra’s near-term goals but also support the creation of strategic outsourcing partnerships, enabling greater efficiency and collaboration with global suppliers.
In a statement, Stegra confirmed it is in advanced talks with several partners to optimize production and streamline operations.
As global demand for low-carbon materials grows, Stegra’s environmentally conscious approach positions Sweden as a leader in green manufacturing innovation. The project also aligns with the European Union’s climate goals, which aim for carbon neutrality by 2050.
In the words of Henrik Henriksson, “Stegra’s mission is to prove that sustainability and industrial strength can go hand in hand. We are not just building a steel plant; we are building the foundation for a cleaner, more resilient future.”
With strong investor confidence, cutting-edge hydrogen technology, and unwavering commitment to sustainability, Stegra is poised to redefine the steel industry — turning one of the world’s most carbon-intensive sectors into a driver of the green revolution.
