The Swedish company Stegra announced the closing of a €1.4 billion funding round aimed at strengthening the development of its near-zero emission steel plant in Boden, northern Sweden. The operation was led by a consortium headed by Wallenberg Investments and included participation from current investors, new shareholders, and financial entities that continue to support the project.
The company, founded in 2020 with the goal of decarbonizing hard-to-abate industries, believes this new financial backing reinforces the viability of its strategy to transform steel production through low-emission technologies.
Broad support from investors and financial institutions
Participants in the round include IMAS, Temasek, Bolero, and SEB-Stiftelsen, along with a large group of shareholders maintaining their commitment to the project. Altor, Hy24, Just Climate, Scania, Schaeffler, Kobe Steel, and Swedbank Robur, among others, also participated.
Additionally, a group of junior debt lenders led by AIP Management decided to join as direct equity investors, strengthening the company’s capital structure.
According to Henrik Henriksson, CEO of Stegra, the closing of the deal reflects market confidence in the company’s ability to supply steel with a significantly lower carbon footprint than conventional steelmaking processes.
Stegra’s green steel advances at the Boden plant
With the funding completed, Stegra will continue to intensify construction activities at its industrial complex in Boden. Simultaneously, the company is reviewing the overall project timeline to adapt the subsequent execution phases.
The initiative seeks to establish a value chain based on clean technologies for steel production, contributing to the reduction of emissions associated with one of the industrial sectors with the highest climate impact.
In addition to private backing, Stegra receives support from the European Union Innovation Fund and the Swedish Energy Agency, organizations that promote projects focused on the energy transition and the reduction of industrial emissions.
A strategic project for Sweden and the European Union
Wallenberg Investments noted that the commissioning of the Boden plant represents a significant opportunity to strengthen Swedish industrial competitiveness and improve security of supply within the European Union.
The project also aligns with European efforts to accelerate the decarbonization of heavy industry and foster the production of strategic materials with lower carbon emissions.
Thanks to this new capital injection, Stegra improves its financial position and maintains access to credit lines previously agreed upon within its 2024 financing package. The company believes this structure will allow it to move forward with greater stability toward the plant’s operational phase and consolidate its commitment to a more sustainable steel industry.
Source and photo: Stegra
