Stegra Secures New Financing for Innovative Green-Steel Plant in Sweden

Stegra Secures New Financing for Innovative Green-Steel Plant

Stegra, a trailblazer in green steel production, has announced a new financing round aimed at constructing the world's largest green-steel plant in Boden, Sweden. This initiative is fueled by robust initial commitments from existing investors, underscoring their confidence in Stegra’s vision and potential for success. CEO Henrik Henriksson remarked that the support from foundational and key investors highlights Stegra's significant business case.

With a strong order book and competitive cost position, Stegra is well-poised to make a powerful impact in the green steel landscape. The new round is projected to contribute approximately 15% toward total project funding, which will be financed through a combination of new equity, debt, outsourced operations, and strategic partnerships.

Current project status reveals that Stegra has successfully completed more than 60% of the construction journey, with a clear outline for the next stages. An extension of three months has been incorporated into the project timeline to accommodate additional scope, reinforcing the meticulous planning that guides the initiative forward. Henriksson detailed ongoing negotiations regarding outsourcing opportunities, signaling Stegra's strategy of enhancing internal capabilities while mitigating challenges in the supply chain.

The financing aims to cover critical responsibilities, such as insourcing essential infrastructure investments, addressing higher project costs, establishing a prudent financial buffer, and offsetting unmet state grants approved by the EU Commission. Specifically, this includes vital railway investments and port infrastructure improvements, which are instrumental to the project’s success and operational efficiency. The decision to manage these investments in-house is expected to enhance control over the entire project.

Moreover, this funding round will facilitate groundworks and help manage the overall escalation in costs related to materials, construction, and installation. The construction of this unique plant not only proposes innovation in steel manufacturing but also embodies a strong commitment to sustainable practices and responsible resource management.

As Stegra continues making strides in the green steel sector, it remains focused on assembling a reliable infrastructure that adheres to the company’s sustainable practices while boosting local economic development. With a unique position in a burgeoning industry and the backing of committed investors, Stegra is on track to reshape the future of steel production and emphasize sustainability in manufacturing endeavors.

For further details, press inquiries can be directed to Karin Hallstan, Head of Communications at Stegra, via email at [email protected] or by phone at +46 76 842 81 04.