Swedish company Stegra has announced a new round of financing to support the construction of the world's first large-scale green steel plant in Boden, Sweden, following strong commitments from existing investors.
Renewed support from founders and leading investors, according to Henrik Henriksson, the company's CEO strengthens confidence in Stegra's business model. He said the company has a strong order book, competitive cost structure and proven execution capabilities.
Proceeds from this financing round are expected to represent up to 15 percent of Stegra's total project financing, combining new equity and debt instruments, outsourcing agreements and select strategic partnerships. In addition to equity commitments, Stegra is negotiating with outsourcing partners.
Mr. Henriksson said the project was 60 percent complete, with a clear plan and timeline extended by three months to accommodate additional volumes. The new financing will strengthen project implementation and provide a financial buffer.
Funds raised will be used to:
- Cover the expanded scope of the project associated with attracting resources from the railway and port infrastructure that is currently designed, built and owned Stegra.
- Compensates for higher costs of materials, construction and installation.
- Compensate for government grants not implemented despite prior approval from the EU Commission.
- Maintain reasonable liquidity and stability during the remaining construction period.
Once completed, the Boden green steel project positions Stegra as a leading player in the decarbonized steel market in Europe, enabling large-scale production of fossil fuel-free steel with integrated logistics and renewable energy infrastructure.
