Swedish industrial company Steers, the developer of one of the largest European green steel projects in Boden, is under financial pressure after state funding was partially withheld. Despite the fact that the EU approved 265 million euros as Swedish support, only 100 million euros were released, which forced the company to look for new sources of capital to maintain the project.
state assistance from the use of natural gas
. Nevertheless, the remaining amount was blocked by the Swedish environment for environmental protection, citing the fact that the production is not yet completely free from fossils, since Steers plans to use natural gas until a renewable source is available.
. The company also studies public support schemes, promotions and debt.
The structure of financing and EU support
the bar initially provided financing of more than 6 billion euros. Of this amount, approximately 4.2 billion euros came from loans, while 2.1 billion euros were provided as capital. In addition, the EU innovation fund provided 250 million euros, and the European commission approved another 265 million euros in support of the state of Swede.
The status of construction and the terms
Despite financial failures, construction in Bauden continues. The Boden plant is built around electrolysis technology with a planned capacity of 740 megavatts. Instead of coal and cola, the object will use hydrogen to reduce iron ore, which potentially reduces carbon emissions to 95 percent compared to traditional explosive furnaces. Steers has already installed 10 electrolysis modules (200 MW). It is expected that the plant will begin continuous operation in 2026, starting with scrap made of steel in electric arc furnaces, and then integrating direct recovery based on hydrogen.
